IRS Publication 487

Source: https://www.irs.gov/pub/irs-pdf/p487.pdf

How to Prepare an Application Requesting the United States to Release Its Right to Redeem Property Secured by a Federal Tax Lien

There is no standard form available for an 3. JUDICIAL PROCEEDINGS – You can get an application for Requesting the United States to application for a release of right to redeem Release Its Right to Redeem Property Secured by property from the United States Attorney’s a Federal Tax Lien. Prepare your request in the office for the judicial district in which the form of a typed letter and submit it with all property subject to the right of redemption is located, if the United States has been properlyaccompanying documents to: named a party defendant in a judicial proceeding under Section 2410 of Title 28,IRS, Attn: Technical Services Advisory Group Manager United States Code.

(Address Application to the IRS office that filed the lien. Use Publication 4235, Technical Services Advisory Group Specific Instructions Addresses, to determine where to mail your request.) Important: You must include the date of your General Information application. Section 7425(d) of the Internal Revenue Code provides 1. Please give the name and address of thethat the United States may redeem real property sold person requesting the United States to releasein a nonjudicial proceeding when the sale is made to its right to redeem property under Internalsatisfy a lien prior to that of the government. The Revenue Code (IRC) section 7425(d).Technical Services Advisory Group Manager for the Internal Revenue Area in which the property is located 2. Describe the property for which you are has been delegated authority to release any right to requesting the United States to release its redeem property. right of redemption. Use the description in the title or deed to the property, or attach aThe government may release its right of redemption if certified copy of the title or deed. Includeyou pay the Internal Revenue Service an amount equal street address, city and state. Indicateto the value of that right; or if the IRS determines that whether it is a personal residence, rentalthe right of redemption is valueless. property, commercial property, unimproved Please follow all applicable instructions in this property, etc., at the time of the nonjudicial publication when you apply for a release by the United sale. States of its right to redeem property under IRC 3. Furnish the following information about theSection 7425(d). nonjudicial sale (such as a foreclosure, General Instructions execution, state or local tax sale):

1. Do not send any payment with your • Date sale was held. application. The Technical Services Advisory • Name and address of the Technical Group Manager will notify you of any amount Services Advisory Group Manager to whom due after your application is investigated and the notice of sale was sent (if known). approved. When your payment (if required) is received, the Technical Services Advisory • Name and address of purchaser. Group Manager will issue you a release of the right to redeem property. • Purchase price.

2. Please send payment in cash, or by United 4. If the property owner at the date of this States postal or bank money order, or a application was not the purchaser at the certified, cashier’s or treasurer’s check. Any nonjudicial sale, give the owner’s name and payment made with uncertified funds will delay address. issuance of the release of the right to redeem until the funds are validated and honored. NOTE: Any questions regarding payment can be addressed with the Technical Services advisor assigned to handle the investigation.

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5. List the encumbrances you want to have 7. Give your estimate of the fair market value of considered. For each encumbrance show: the real property with a detailed explanation of how you arrived at the estimate. • Name and address of holder. 8. The Technical Services Advisory Group • Description of the encumbrance. Manager may request you to furnish additional information. • Date it arose. 9. Provide a daytime telephone number and E-mail • If the encumbrance was recorded, give the address (if available) where you may be date and place. reached. • The original principal amount of the 10.Provide the name, address, telephone number encumbrance and the interest rate. and E-mail address of your attorney or representative, if you have retained one. • The principal amount due as of the date of the application, if known. (Show costs and 11.You must make the following declaration over accrued interest separately.) your signature and title. “Under the penalties of perjury, I declare that I have examined this • Your family relationship, if any, to the application (including any accompanying holder of any other encumbrance on the schedules, exhibits, affidavits, and statements) property. and to the best of my knowledge and belief it is true, correct, and complete.”6. Attach a copy of each Notice of Federal Tax Lien affecting the property, or furnish the following information as it appears on each filed Notice of Federal Tax Lien:

   • Name of the Internal Revenue Area Office.

   • Name and address of the taxpayer.

   • Date and place each notice was filed.

   Department of Treasury Publication 487 (Rev. 1-2006) www.irs.gov
   Internal Revenue Service Catalog Number 46553K