Mon, Jul 06, 2009

Business

IRS revamps lien policy to help with home sales, refinancing

Arizona Daily Star
Tucson, Arizona | Published: 12.16.2008
With foreclosures soaring in these trying economic times, the IRS on Tuesday announced a process that would make it easier for people to refinance or sell their homes.
The tax agency said it will speed up a process so federal tax liens do not restrict taxpayers from refinancing or restructuring a mortgage loan.
Taxpayers can request a tax lien be made secondary to other liens, such as that of a lending institution, or removed from a property someone is trying to sell if there is enough equity in other assets.
The IRS must balance its ability to enforce the law with the needs of American citizens, said IRS Commissioner Doug Shulman. The process is geared to help people who've fulfilled their tax obligation, but might fall behind because of extraordinary circumstances, Shulman said.