₪₪₪ Can the IRS put a lien on a car immediately after I buy it? (for a 3rd Party Buyout of a lease)?
As with a lot of people, I’ve been a victim of the economy and corporate layoffs and have run into financial hardships with debt amounting – most importantly a significant tax debt I’ve been trying to pay off to the IRS. Before all this I had entered into a car lease. With about a year commitment left on the lease I’ve been looking into ways to get out of it. I found the market value of the vehicle is greater than my current buyout. So rather than paying a penalty to default on the lease I could actually come out ahead in this. The good new is I have found a buyer. The plan is for us to do a “3rd party buyout” where we pay off the bank using the buyers cash and transfer title over to the new buyer. The bad news is the IRS has begun a collection process with me and I’m concerned that between the time the bank goes to register the title in my name (as required by the bank) and sends it to me (2-3weeks) the IRS could place a lien on the title, thus making it impossible for me to transfer it to the new buyer without having paying off all my taxes first. Before I move forward with the sale I need to know if this is a danger to me and the buyer.
If can successfully do this 3rd party buyout, we all win. I’ll be better off financially/not risk damaging my credit further, I can use any proceeds to pay off some of my IRS debt, and the buyer gets a good deal on a car.
Any advice on this matter would be greatly appreciated.
Category: IRS Problems
