Ezel / IRS Rulings / 201039027

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

Number
201039027
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Discharge of Liens
Topics
Procedure, penalties, and administration
Code sections
§ 6325
Ruling dated
August 27, 2010
Publicly released
October 1, 2010
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 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 is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, 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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