My dad died two years ago and he had put his home in my name before he died. Now 2 years later when I am doing a home equity loan I find there is a tax lien on it. The title was clear 6 months ago so this is fairly recent. The house is only in my name and this lien has been put on not only after the house was deeded to me but also 2 years after his death. How is this possible? Should I call the IRS about this or go to a tax lawyer first?
2007-05-09 04:42:44 · 5 answers · asked by a b 1 in Business & Finance ➔ Taxes ➔ United States
When a person dies owing tax, his estate has to pay the tax. Property given to someone within three years of death is still considered part of the estate. That is how the IRS is now first in line to get any money it says is owed by your father from the sale or refinancing of your house. Since you are now the owner of the house, the debt falls upon you. There is nothing illegal about this.
Before spending money on an attorney, I would contact the IRS.
You need to find out how much the lien is and for what years. If you have access to your father's tax records, you need to determine if he owed the tax that the IRS says he owed. It may be that in the year of his death, a return was not filed for him. If that is the case, you need to get transcripts from the IRS, any income documents that your father had, and get his final return filed.
Hopefully the lien isn't large and when you refi your house, the lien can be cleared.
2007-05-09 09:02:58 · answer #1 · answered by ninasgramma 7 · 1⤊ 0⤋
Because of the fact that he transferred it to you so close to teh date of his death then presume it was due to his death, or impending death. I think the time frame is something like 5-7 years, and you mention it was within 2. So that could be part of the reason. Additionally, since this is May I have to assume you recently filed taxes, which could cause the update. Contact the IRS before doing anything and find the exact reason for the lien before proceeding.
2007-05-09 04:54:41 · answer #2 · answered by ShouldBeWorking 6 · 0⤊ 0⤋
You should call the IRS and get them to tell you the reason why they believe that they can put a Tax Lien on your house and to give you their reason in writing. You will have to talk to a tax lawyer, but he will have less work to do (therefore less hours to bill) if you already know why they have put the lien on instead of making him do the legwork..
2007-05-09 04:48:22 · answer #3 · answered by New Dog Owner 4 · 2⤊ 1⤋
You could talk to a lawyer. Depending on how long before his death the house was deeded to you, they might still be able to put a lien on it.
2007-05-09 05:27:35 · answer #4 · answered by Judy 7 · 2⤊ 0⤋
When property is transferred within 5 years of death, it is presumed to have been transferred in anticipation of death.
The IRS also presumes that it was transferred to you to prevent them from getting their hands on it, especially if it's transferred to a close relative at below market value.
That's 2 strikes against you. You will probably have to go to Tax Court to fight that one. Get a tax attorney and CPA to look at your case. This can be complex, get legal counsel!
2007-05-09 04:52:26 · answer #5 · answered by Bostonian In MO 7 · 4⤊ 2⤋