Before you sell real property of a deceased person’s estate, you may need the IRS to remove or discharge that property from an IRS lien. This allows the buyer to take title to the property free and clear of the lien. There are several scenarios that you must consider to determine the correct action:
- If the IRS has filed a Notice of Federal Tax Lien PDF , there will be a notice in the public records.
- If you’re selling the deceased person’s property and the sale proceeds fully pay the deceased persons liability shown on the lien, contact the IRS Lien Unit for a payoff.
- For the sale of real property of a deceased person, if the proceeds will not fully pay the tax liability, you’ll need to apply for a lien discharge with Form 14135, Application for Discharge of Property from Federal Tax Lien PDF and see Publication 4235, Collection Advisory Offices Contact Information PDF .
- If there’s a Form 706 or Form 706-NA, United States Estate Tax Return, filing requirement, a federal estate tax lien attaches to all of the deceased person’s gross estate. The federal estate tax lien doesn’t have to be publicly recorded to be valid, and it’s only in effect for estates that are required to file Form 706 or Form 706-NA.
- If the estate you’re administering has a Form 706 or Form 706-NA filing requirement, and the property is administered by an executor or administrator appointed, qualified, and acting within the United States, apply for a discharge of the estate tax lien by submitting Form 4422, Application for Certificate Discharging Property Subject to Estate Tax Lien PDF .
- If the estate you’re administering has a Form 706 or Form 706-NA filing requirement, and the property is not administered by an executor or administrator appointed, qualified, and acting within the United States, apply for a transfer certificate for the estate of a nonresident not a citizen of the United States or transfer certificate for estate of a nonresident citizen of the United States.
Page Last Reviewed or Updated: 19-Aug-2024
