Ezel / IRS Rulings / 1039027
Chief Counsel Advice 1039027 Released October 1, 2010 Advice

An Internal Revenue Manual provision does not apply to a short sale when the lien exceeds property value

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This page covers one taxpayer's ruling from 2010, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2010
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel Advice addresses a short sale in which a bank’s lien exceeds the property’s value. It concludes that Internal Revenue Manual § 5.12.3.14.3 does not apply in that situation. The document provides no further factual or legal analysis.

Ruling snapshot

  • Question: Does IRM § 5.12.3.14.3 apply when a bank’s lien exceeds the value of property in a short sale?
  • Outcome: Advice given
  • Key authorities: IRC § 6325; IRM § 5.12.3.14.3

Full text (IRS public release)

ID: CCA_2010082715013050 Number: 201039027
Release Date: 10/1/2010
Office: ----------
UILC: 6325.00-00

From: -----------------------
Sent: Friday, August 27, 2010 3:01:31 PM
To: -------------------------
Cc: -----------------------------------------------------------------------------------------
Subject: RE: Short Sale Discharge case in Florida

IRM 5.12.3.14.3 does not apply in a short sale situation where the bank's lien exceeds
the value of the property. ----------------------------------------------------------------------------------

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