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 LienPDF, 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 LienPDF. If there’s a Form 706, United States Estate Tax Return filing requirement, a federal estate tax lien attaches to all of the deceased person’s gross estate. The 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. If the estate your’re administering has a Form 706 filing requirement, apply for a discharge of the estate tax lien by submitting Form 4422 Application for Certificate Discharging Property Subject to Estate Tax LienPDF.
