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IRS Certificate of Discharge of Federal Tax Lien

A small, family-owned business located in Nebraska hired Timberline to establish protection against collection action and negotiate a resolution for their Internal Revenue Service liability in the amount of $40,000. However, once all returns were processed, the balance climbed to $75,000.  The business was not producing like it had before and was unable to become current with Federal Tax Deposits. This also added to the balance and prevented a resolution from being established.  Therefore, the Revenue Officer decided to force closure and sale of assets and threatened seizure of the property if it could not be sold.  The Enrolled Agent assigned to the case was able to hold the Revenue Officer off until the client could find a buyer for the property. The sale price was not as high as they had hoped though, and a Certificate of Discharge was required to remove the lien from the business property so that it could be sold.   The Enrolled Agent facilitated communication with the Internal Revenue Service, the client, the realtor, the title company, and the original mortgage holder to complete the Certificate of Discharge and ensure that all payments from the sale of the property were distributed properly based on lien priority.  In the end, the business was closed, and the Internal Revenue Service received payment in the amount of $27,279, saving the business approximately $47,000! 

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