Question: I owe the IRS about $60,000 and they have a filed a tax lien in the county where I live.  Because of the national insecurity due to the upcoming election, the banking crisis, and Wall Street blues I desperately need to sell my house.  I would like to just refinance and take equity out to pay the IRS, but I can’t due to my credit.  Can I sell the house even though there is a lien?
Answer: A lot of people are running into this problem all over the country.  People are feeling a crunch because it is getting harder and harder to finance your property.  It can make it more difficult to sell a home when there is a Federal Tax Lien on the property.  Many people will not be able to see past that lien.  However, there is a solution.  It is possible to negotiate with the IRS to have them subordinate or discharge a Federal Tax Lien in certain circumstances.  You mention that you believe there is equity in your house that would pay off your federal tax debt.  Even if there were not enough equity to full pay, you may still be able to sell your house and have the IRS discharge the tax lien with regard to that specific property.