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52 Instructions Regarding Applications for Releases of Rights of Redemption

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:

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. Federal Tax Liens - List applicable notices of federal tax liens in chronological order, using additional sheets if necessary in supplying the information requested.

  6. Other Pertinent Information - List any other information which in the opinion of the applicant, might have a bearing upon the determination to be made.

  7. 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