What kind of appraisal is used for a subordination of federal tax lien?

When applying for a subordination of a federal tax lien, taxpayers must provide the Internal Revenue Service with all necessary and proper information. This includes information about the tax debt as well as the new debt or loan. In some cases, you may have had an appraisal done of the property that is subject to the lien. If this is the case, you must indicate this when applying to the IRS for the subordination.

Types of Appraisals Used for an Application for a Subordination of a Tax Lien

What you may soon discover as a taxpayer owing money to the IRS is that appraisals come in many different formats. The following is an overview of some of the methods that may be used in relation to a certificate for subordination of federal tax lien:

  1. The valuation produced by the county in which real property exists.
  2. An informal valuation of the property performed by a disinterested third party. Typically, this is done by a professional who provides information such as a neighborhood analysis, a description of the property site, a description of the improvements made to the property, comparable sales, a definition for market value, and interior and exterior photos of the property.
  3. A proposed selling price where the property is being sold at auction.
  4. Some other means, indicated on the Application.     

Whether or not you need an appraisal when applying for a subordination of your federal tax debt is best discussed with an experienced attorney. We have helped many clients successfully obtain subordinations. We encourage you to check out our client testimonials page today to learn more about how we can help.