Sell Your Indiana House with an IRS Lien — Cash Offer, Lien Resolved at Closing

How IRS Liens Affect a Home Sale

When you owe federal taxes and don't pay, the IRS can file a Notice of Federal Tax Lien against your property. This lien attaches to all your real and personal property and must be resolved before you can sell your home with clear title.

An IRS lien doesn't prevent a sale — but it does require coordination with the IRS. The most common resolution is a 'discharge of property from federal tax lien,' which allows the property to be sold free of the lien while the IRS receives its portion of the proceeds. The IRS has specific procedures for this, and the process takes time.

Bartolini Cash Buyers purchases homes with IRS liens. The title company and your tax professional handle the discharge process. A cash offer with no financing contingency is the strongest offer you can put in front of the IRS.

The IRS Lien Discharge Process

To sell a property with an IRS lien, the seller (or their representative) typically applies to the IRS for a Certificate of Discharge using IRS Form 14135. The IRS reviews the application and, if approved, issues a certificate that allows the property to be sold free of the lien. The IRS receives its portion of the proceeds at closing.

The IRS discharge process typically takes 30–45 days from application to certificate issuance. This means an IRS lien sale takes longer than a standard cash sale — but it's still faster and more certain than a traditional financed sale, which adds its own timeline on top of the IRS process.

In some cases, the IRS may also accept a 'subordination' of the lien, which allows a new mortgage to take priority over the IRS lien. This is more relevant for refinancing than for a sale, but it's another tool available in complex situations.

Indiana State Tax Liens

Indiana also has state tax liens for unpaid state income taxes, sales taxes, and other state obligations. Indiana Department of Revenue liens are recorded with the county recorder and must be resolved before title can transfer. The process for resolving Indiana state tax liens is similar to IRS liens but handled through the Indiana DOR.

If you have both IRS and Indiana state tax liens, both must be resolved before or at closing. Multi-lien situations are handled by the title company at closing. Bartolini Cash Buyers is not a tax professional — we encourage sellers with tax lien situations to consult with a tax attorney or CPA.