PART A - To be executed by applicant
The application on obverse side of this sheet is to be completed in
applying for any release of right of redemption of the United States in respect
of federal tax liens arising under 28 U.S.C. Section 2401(c), or under state law
when the United States is joined as a party. In making application for such
release, applicant must complete obverse side hereof and submit original and
three (3) copies to the United States Attorney for the district in which property
subject to right is located in accordance with the following instructions:
- Property Data - State address and legal description of
property as it appears in the foreclosure or quiet title complaint. Attach
additional sheets if necessary. Indicate type and use of property. As to type,
indicate whether it is commercial or residential; as to use, indicate whether it
is personal residence, rental property, etc.
- Appraisal Action - State fair market value and forced sale value
as of current date as established by written appraisals of two (2) disinterested
personal qualified to render appraisals. Written appraisals in triplicate must
accompany application, together with brief statement setting forth each
appraiser's qualifications. Any Federal Agency may submit its own value in lieu
of two written appraisals.
- Foreclosure Information - Give date of foreclosure sale, name and
address of purchaser, and purchase price. Attach copy of decree of foreclosure
or other judicial proceeding.
- Encumbrances and Charges to be Considered - List all encumbrances
and charges which applicant requests be taken into consideration in valuing the
right of redemption, in order of priority, together with sufficient information
to establish or identify such priority. Attach additional sheets if necessary
in supplying the information requested.
- Federal Tax Liens - List applicable notices of federal tax liens
in chronological order, using additional sheets if necessary in supplying the
information requested.
- Other Pertinent Information - List any other information which in
the opinion of the applicant, might have a bearing upon the determination to be
made.
- This application must be accompanied by a cashier's or certified
check payable to the "Internal Revenue Service" in an amount equal to the value
of the right of redemption of the United States as best estimated by the
applicant based on the information contained in this application, but in no event
can the consideration offered for the release be less than $50.00 (except in the
case of applications by agencies of the United States Government). The
remittance shall be retained by the United States Attorney, and should this
application be rejected such cashier's or certified check will be returned
without interest.
PART B - For Government Use
The United States Attorney will forward the original and two copies of
application together with one set of the appraisals to District Director of
Internal Revenue for his/her verification and recommendation. The Internal
Revenue Service will return the original application to the United States
Attorney who must satisfy him/herself that amount offered is at least equal to
the value of right of redemption of the United States. He/she may take into
consideration his/her own experience and familiarity with this or similar
property in the area. Also, he/she may take into consideration forced sale value
when it bears a realistic relationship to fair market value. The United States
Attorney upon satisfying him/herself that acceptance is in best interest of the
United States and with concurrence of Internal Revenue Service is authorized to
accept any application to release right involving (1) real property on which is
located a single-family residence, (2) all other property having
fair market value not in excess of $200,000, and (3) any application of any
Federal Agency. If the United States Attorney concludes that acceptance of any
application is not in the best interest of the United States, he/she is
authorized to reject such application. When the United States Attorney takes
final action, a complete copy of the application should be sent to the Tax
Division, U.S. Department of Justice. When the United States Attorney is not
authorized to take final action, the original application and all
appraisals and schedules which he/she has should be sent to the Tax Division.
| October 1997
| Tax Resource Manual 52
|