New IRS Guidance on Principal Residence Foreclosures from tax Liens

The IRS has issued new guidance for foreclosures that have to do with a taxpayers principal home. Before the IRS can seek suit to foreclose on a personal principal property there are certain administrative cures that will be looked at first as well as if the taxpayer has any hardship issues, all these will be assessed before seeking a suit. These administrative cures help provide a more detailed look at the policies and procedures for suits. The guidance includes two options for the process of collecting the taxpayers principal residence. The first option is a  obtaining a  court order through proceeding that would allow for the administrative seizure of a principal residence under tax code Section 6334(e)(1). The second option is a suit to foreclose on the principal residence from the tax lien under Section 7403, but all administrative cures and hardships need to be examined beforehand. Most of these administrative cures include contacting the tax payer with the lien and advising them on the issue, the options they have and obtain and other other neccessary information.