Priority of IRS Tax Liens

IRS Offer in Compromise Priority of Tax Liens: "State tax liens and federal tax liens differ in several ways. First, all state tax liens must be recorded to establish priority. There are no silent tax liens. Second, state tax liens attach only to the taxpayer's nonexempt property. Federal tax liens attach to homestead property. The IRS may sell a couple's homestead even when only one spouse is liable for the tax. U.S. v. Rodgers, 461 U.S. 677 (1983). Third, no prior notice of a pending foreclosure on a superior security lien needs to be given to extinguish a state tax lien. And finally, the taxpayer is afforded no redemption period following a state tax lien foreclosure."

IRS Offer in Compromise Information

IRS Offer in Compromise - Proposed New Rules 2005

Proposed New Rules: "The proposed regulations incorporate the amendments made by section 3461 of RRA 1998. The proposed regulations provide that the IRS may enter into an agreement to extend the period of limitations on collection if an extension agreement is executed: (1) at the time an installment agreement is entered into; or (2) prior to release of a levy pursuant to section 6343, if the release occurs after the expiration of the original period of limitations on collection. "

IRS Offer in Compromise - Rules Revisited - 10 Year Limitation

IRS Offer in Compromise - Rules Revisited: "Collection of Tax Liabilities after Assessment under Section 6502

Pursuant to section 6502 of the Code, the IRS generally has 10 years from the date of assessment to collect a timely assessed tax liability. Prior to January 1, 2000, the effective date of section 3461 of RRA 1998, section 6502 permitted the IRS to enter into agreements with the taxpayer to extend the period of limitations on collection at any time prior to the expiration of the period provided in section 6502. Prior to the enactment of RRA 1998, the IRS used these collection extension agreements, or waivers, in various circumstances to protect its ability to collect a tax liability beyond the original 10-year period of limitations on collection. For example, the IRS historically conditioned consideration of an offer in compromise upon the execution of a collection extension agreement or waiver."

IRS Offer in Compromise Information