Federal Tax Lien, Statute of Limitations, Subordination Agreements by IRS on a new loan to help buyer qualify

Flagstaff, AZ Viewed 236 times. Posted 4 months ago in Tax

A 1999 1040 Tax Form was filed with the IRS on Feb 2, 2001. A CH. 13 BK was simultaneously filed which later converted to CH. 7 w/no tax discharge. BK discharged in 2004. Tax debt status "uncollectible" but later payment arrangements were made once a tax lien judgment was recorded, bank accounts levied etc. To the best of my recollection, I never signed Form 900 (extending the time limits).

When would the statute of limitation expire?
Do public records exist showing such expiration date/status?
Are more aggressive attempts for collection by IRS common closer to this expiration?
Will IRS subordinate existing tax lien on a new mortgage?
Could contacting the IRS about this trigger a cancellation of payment arrangements?
Would BK affect statute of limitations?
Advocacy groups?

Answers (1)

Mark L Rosenberg

This attorney is licensed in Dist. of Columbia and 1 other state. Posted 4 months ago.

You have asked a complex tax question that cannot be answered without careful review of the relevant documents. In general, if the file has been marked "uncollectible", it would have to be taken out of that status for collection efforts to resume. But, you also said that you had a payment arrangement, so it may have been taken out of that status already. The IRS will subordinate to new financing in some situations, there is a procedure for requesting that.

You should contact experienced tax counsel to assist you in resolving this problem.

Mark L. Rosenberg