When do IRS liens have to be paid?

[Account Closed]

Hello, and thank you for taking the time to read this!

I am new to real estate and am having a blast learning. Hoping to make my first deal soon and stumbled across a local auction that might help me. I am looking at some properties at the county tax auction, one of which has a substantial amount of IRS tax liens attached to it. My understanding is that the IRS tax liens will have to be paid, but when? 

Will they need to be paid at the auction along with whatever the house sells for, before the deed can be transferred into my name? Or will I have to pay the liens off later, before I sell the property?

Thank you for your time!

[Josh Carr]

@Account Closed An IRS lien is equal to and is in a superior or first position lien. It has to be dealt with and there is a way to do it. You will need to "type" up a letter to the IRS asking them to release their right to redeem and send it to the "technical services advisory group manager". This is the group working for the IRS that handles the IRS liens against real property. It is their only leverage against unpaid taxes and although they do not want to go into the real estate business it is something that needs to be addressed. It is not a difficult process but needs to be done correctly. Or, you could file a disposition with the IRS where they have 120 days to respond and if they do not respond within the 120 days they no longer can and have no right to redeem. The IRS will send you back information as to what they will accept in order to release their right to redeem. You may not have to pay much to get the property clear of the IRS lien. It is possible that they won't want anything. Depending on how much the IRS lien is some of the tax collectors attach the bill along with the deed. It may still be a very good deal even with the IRS lien. Compare the FMV to the outstanding debt, taxes included, and see if the deal still makes sense. Then get going on your letter to the IRS to see what they will take in lieu of. Good luck to you! There are many good deals which include the IRS liens. Some people even used this strategy as their niche.