Tax Lien Subordination Request

TAX LIEN SUBORDINATION REQUEST

IRS FORM 14134 SUBMISSION PACKAGE

APPLICANT INFORMATION

Taxpayer/Applicant Name: [FULL LEGAL NAME]

Social Security Number / EIN: [SSN/EIN]

Current Address:
[STREET ADDRESS]
[CITY, STATE ZIP]

Daytime Telephone: [PHONE NUMBER]

Email Address: [EMAIL]

Total Federal Tax Liability: $[AMOUNT]

Notice of Federal Tax Lien Date: [DATE]

NFTL Recording Information:

• County/State: [LOCATION]
• Recording Date: [DATE]
• Recording Number: [NUMBER]

COVER LETTER

[DATE]

Internal Revenue Service
Advisory Group Manager
[IRS ADDRESS - OBTAIN FROM LOCAL IRS OFFICE]

Via Certified Mail No.: [TRACKING NUMBER]

Re: Application for Certificate of Subordination of Federal Tax Lien
Taxpayer: [TAXPAYER NAME]
Social Security Number/EIN: [NUMBER]
Tax Period(s): [PERIOD(S)]
Property Address: [PROPERTY ADDRESS]
Proposed Transaction Date: [DATE]

Dear Sir or Madam:

Enclosed please find a complete application for a Certificate of Subordination of Federal Tax Lien pursuant to IRC § 6325(d). This application is submitted at least 45 days prior to the proposed loan settlement/transaction date.

I am requesting that the IRS subordinate its federal tax lien interest to [DESCRIBE PROPOSED TRANSACTION, e.g., "a refinance mortgage from ABC Bank"] on the property located at [PROPERTY ADDRESS].

This subordination will benefit the United States because [BRIEF EXPLANATION OF HOW THIS HELPS IRS COLLECT THE TAX].

SECTION 1: BASIS FOR SUBORDINATION REQUEST

IRC § 6325(d) authorizes the IRS to issue a certificate of subordination if:

☐ Option 1: The United States will receive an amount equal to the lien or interest being subordinated

Amount to be paid to IRS: $[AMOUNT]
Current lien amount: $[AMOUNT]

☐ Option 2: The subordination will increase the United States' interest and facilitate collection

Explain how subordination facilitates collection:
[PROVIDE DETAILED EXPLANATION]

SECTION 2: PROPERTY INFORMATION

Property Subject to Subordination:

Property Type:
☐ Primary Residence
☐ Investment Property
☐ Commercial Property
☐ Vacant Land
☐ Other: [DESCRIBE]

Property Address:
[FULL ADDRESS]

Legal Description:
[LEGAL DESCRIPTION OF PROPERTY]

Parcel/Tax ID Number: [NUMBER]

Current Fair Market Value: $[VALUE]

Basis for Valuation:
☐ Recent Appraisal (Date: [DATE])
☐ Tax Assessment
☐ Comparable Sales Analysis
☐ Other: [DESCRIBE]

SECTION 3: CURRENT ENCUMBRANCES

List all existing liens and encumbrances on the property:

Total Encumbrances: $[TOTAL]

Equity Position:
Fair Market Value: $[VALUE]
Less: Total Encumbrances: $[ENCUMBRANCES]
Net Equity: $[EQUITY]

SECTION 4: PROPOSED TRANSACTION

Type of Transaction:

☐ Refinance of Existing Mortgage

• Current lender: [LENDER]
• Current balance: $[AMOUNT]
• Current interest rate: [RATE]%
• New lender: [LENDER]
• New loan amount: $[AMOUNT]
• New interest rate: [RATE]%
• Monthly payment change: $[AMOUNT]

☐ Home Equity Loan/Line of Credit

• Lender: [LENDER]
• Loan amount: $[AMOUNT]
• Purpose of loan: [PURPOSE]

☐ New Mortgage (Purchase)

• Lender: [LENDER]
• Loan amount: $[AMOUNT]

☐ Construction Loan

• Lender: [LENDER]
• Loan amount: $[AMOUNT]

☐ Other: [DESCRIBE]

Proposed Transaction Date: [DATE]

New Loan Terms:

• Lender Name: [LENDER NAME]
• Lender Address: [ADDRESS]
• Loan Amount: $[AMOUNT]
• Interest Rate: [RATE]%
• Loan Term: [TERM] years
• Monthly Payment: $[AMOUNT]

SECTION 5: BENEFIT TO THE UNITED STATES

Explain how this subordination will benefit the United States and facilitate collection:

☐ Direct Payment to IRS
Amount to be paid: $[AMOUNT]
Timing: ☐ At closing ☐ Within [TIMEFRAME]

☐ Reduced Monthly Payments Will Increase Ability to Pay
Current mortgage payment: $[AMOUNT]
New mortgage payment: $[AMOUNT]
Monthly savings: $[AMOUNT]
How savings will be applied to tax debt: [EXPLAIN]

☐ Access to Equity for Tax Payment
Net proceeds available: $[AMOUNT]
Amount to be paid to IRS: $[AMOUNT]

☐ Property Improvement Will Increase Value
Current value: $[VALUE]
Expected value after improvements: $[VALUE]
How increased value benefits IRS: [EXPLAIN]

☐ Prevents Foreclosure/Preserves Asset
[EXPLAIN HOW SUBORDINATION PREVENTS LOSS OF ASSET]

☐ Other Benefit:
[EXPLAIN]

Detailed Statement - How Collection Will Be Facilitated:

[PROVIDE A COMPREHENSIVE EXPLANATION OF HOW THE SUBORDINATION WILL ULTIMATELY RESULT IN THE IRS RECEIVING MORE MONEY THAN IT WOULD WITHOUT THE SUBORDINATION. BE SPECIFIC ABOUT DOLLAR AMOUNTS AND TIMING.]

SECTION 6: TAXPAYER'S FINANCIAL SITUATION

Current Monthly Income:
| Source | Amount |
|--------|--------|
| Wages/Salary | $[AMOUNT] |
| Self-Employment | $[AMOUNT] |
| Other | $[AMOUNT] |
| Total Monthly Income | $[TOTAL] |

Current Monthly Expenses:
| Expense | Amount |
|---------|--------|
| Current Mortgage Payment | $[AMOUNT] |
| Other Housing Costs | $[AMOUNT] |
| Living Expenses | $[AMOUNT] |
| Other Debts | $[AMOUNT] |
| Total Monthly Expenses | $[TOTAL] |

Current Payment Arrangement with IRS:
☐ No current arrangement
☐ Installment agreement: $[AMOUNT]/month
☐ Currently Not Collectible status
☐ Pending Offer in Compromise

Proposed Payment to IRS After Subordination:
☐ Lump sum payment of: $[AMOUNT]
☐ Increased monthly payments of: $[AMOUNT]
☐ New installment agreement: $[AMOUNT]/month
☐ Other: [DESCRIBE]

SECTION 7: REQUIRED DOCUMENTATION CHECKLIST

Property Documentation:
☐ Copy of deed to property
☐ Copy of title report (current, within 30 days)
☐ Property appraisal or assessment
☐ Copy of all recorded liens (mortgage documents, etc.)
☐ Survey or legal description

Tax Lien Documentation:
☐ Copy of Notice of Federal Tax Lien
☐ IRS Account Transcript

Transaction Documentation:
☐ Loan application
☐ Loan commitment letter from new lender
☐ Good faith estimate or loan estimate
☐ Proposed closing statement/HUD-1
☐ Current mortgage payoff statement

Financial Documentation:
☐ Most recent tax returns (2 years)
☐ Pay stubs (past 3 months)
☐ Bank statements (past 3 months)
☐ Other income documentation

Other Documentation:
☐ Completed Form 14134
☐ Form 2848, Power of Attorney (if represented)
☐ Signed statement explaining benefit to United States
☐ Other: [DESCRIBE]

SECTION 8: STATEMENT OF BENEFIT TO UNITED STATES

I, [TAXPAYER NAME], certify that the requested subordination of the federal tax lien will benefit the United States and facilitate collection of the tax liability as follows:

[PROVIDE A DETAILED, SIGNED STATEMENT EXPLAINING HOW THE SUBORDINATION WILL HELP THE IRS COLLECT THE TAX. THIS IS A CRITICAL COMPONENT OF THE APPLICATION.]

Taxpayer Signature: ___________________________________

Date: [DATE]

SECTION 9: THIRD-PARTY CONTACT INFORMATION

Lender Information:

• Company: [LENDER NAME]
• Contact Person: [NAME]
• Address: [ADDRESS]
• Phone: [PHONE]
• Email: [EMAIL]

Title Company/Settlement Agent:

• Company: [COMPANY NAME]
• Contact Person: [NAME]
• Address: [ADDRESS]
• Phone: [PHONE]
• Email: [EMAIL]

Attorney (if applicable):

• Name: [NAME]
• Firm: [FIRM]
• Address: [ADDRESS]
• Phone: [PHONE]
• Email: [EMAIL]

SECTION 10: APPLICANT CERTIFICATION

Under penalties of perjury, I declare that I have examined this application, including all accompanying documents and statements, and to the best of my knowledge and belief, they are true, correct, and complete.

Applicant Signature: ___________________________________

Printed Name: [TAXPAYER NAME]

Date: [DATE]

SECTION 11: REPRESENTATIVE INFORMATION (IF APPLICABLE)

Representative Name: [NAME]

Firm Name: [FIRM]

Address:
[ADDRESS]

Telephone: [PHONE]

Email: [EMAIL]

CAF Number: [CAF NUMBER]

☐ Form 2848, Power of Attorney and Declaration of Representative is attached

MAILING INSTRUCTIONS

Submit Form 14134 and all supporting documentation to:

Contact your local IRS Advisory Group Manager. The application should be submitted to the IRS office that filed the Notice of Federal Tax Lien.

Locate your local IRS office at:
www.irs.gov/help/contact-my-local-office-in-person

IMPORTANT: Submit at least 45 days before the proposed transaction date

Send via Certified Mail with Return Receipt Requested

Certified Mail Number: ______________________
Date Mailed: ______________________

PROCESSING TIMELINE

1. Submission: At least 45 days before closing/transaction date

2. Review: IRS will review application for completeness

3. Additional Information: IRS may request additional documentation

4. Determination: IRS will issue approval or denial

5. Certificate Issuance: If approved, Certificate of Subordination will be issued

6. Recording: Certificate must be recorded with local recorder's office

IF APPLICATION IS DENIED

If the IRS denies your subordination request:

1. Written Explanation: You will receive a letter explaining the denial reason

2. Appeal: You may file Form 9423, Collection Appeal Request, to appeal the denial

3. Resubmission: You may resubmit with additional information addressing the denial reason

4. Alternatives: Consider other options such as:
   - Discharge of specific property
   - Lien withdrawal
   - Full payment of tax liability

IMPORTANT NOTES

1. 45-Day Requirement: The IRS requires applications be submitted at least 45 days before the transaction date. Plan accordingly.

2. No Guaranteed Approval: The IRS is not required to grant subordination. Approval depends on demonstrating benefit to the United States.

3. Partial Subordination: The IRS may agree to subordinate only a portion of the lien.

4. User Fee: There is currently no fee for subordination applications.

5. Lien Remains: Subordination does not remove the federal tax lien; it only changes the priority relative to the new lien.

6. Future Compliance: The IRS may condition subordination on the taxpayer entering into or maintaining an installment agreement.

This template is provided for informational purposes and should be reviewed by qualified tax counsel before submission to the IRS.