Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121592  
Subject: Re: Federal tax lien Date: 4/7/2011 4:15 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
Do Federal tax liens expire after some period of time? I would guess they wouldn't extend past the 10 year collection statute, but maybe they do.

There are two separate issues, the statutory lien and the public-record notice of lien.

The statutory lien arises at the date of assessment, attaches to all the taxpayer's property present and future-acquired, and is good for 10 years unless extended (IRC 6321-22 and 6502).

The notice of lien establishes priority against certain third parties with an interest in the taxpayer's property (IRC 6323). It's valid as of the date of recording until it's released. If the statutory lien is extended beyond the original 10 years the notice must be "refiled" to maintain its priority. The deadline for refiling is 30 days after the expiration of the original 10-year statutory lien. A refiling extends the notice for another 10 years.

Since sometime in the 80's the notices are "self-releasing." Even if the statutory lien is extended the notice is released as of the refiling deadline if it hasn't been refiled. To re-establish priority against the applicable third parties a new notice must be filed.

In my day the legal opinion was that a failure to refile extinguishes the underlying statutory lien, which must be revived with a revocation of release, establishing a new attachment date. I noticed that the IRS has recently revised the 6323 regs, which hadn't been revised since the Federal Tax Lien Act of 1966, but I haven't had a chance to look at them yet. I got the feeling from the summary that I read that they have addressed the failure to refile.

Phil
Rule Your Retirement Home Fool
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement