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Home›Financial Distress Resource Center›IRS Lien — Sell House Buffalo NY
IRS TAX LIEN ON YOUR
BUFFALO NY HOME —
YOUR OPTIONS
A federal tax lien filed by the IRS attaches to every asset you own — including your home. It does not prevent you from selling, but it must be satisfied at closing. NCB buys homes with active IRS liens across Western New York — all federal tax liens handled through closing.
How an IRS Tax Lien Affects Your Buffalo NY Home
When you owe federal taxes and don’t pay, the IRS can file a Notice of Federal Tax Lien — a public document that establishes the government’s legal claim against your property. Once filed, the lien attaches to all assets you own or acquire, including real estate in Erie and Niagara County.
An IRS lien does not prevent you from selling your home. However, it does appear on your title, must be disclosed to any buyer, and must be satisfied before or at closing. The IRS has priority over most other creditors — meaning they get paid before you receive any equity.
Selling a Home With an IRS Lien in New York
The process of selling a home with a federal tax lien involves a few additional steps compared to a clean title sale:
- IRS lien payoff request: The title company requests a payoff amount from the IRS — the total tax debt plus penalties and interest to a specific closing date.
- IRS discharge of property: In some cases, the IRS may agree to discharge the specific property from the lien — releasing the real estate from the lien while the debt remains — if the sale proceeds don’t fully cover the debt. This requires an IRS Form 14135 application.
- Payoff at closing: If the sale proceeds cover the full IRS payoff, the lien is satisfied at closing and a Certificate of Release is issued.
- Remaining equity: After the IRS payoff and any mortgage balance are satisfied, remaining proceeds go to you.
What if the IRS Lien Exceeds My Home’s Value
If your total IRS debt exceeds your home’s equity, you may need to negotiate a lien discharge or subordination with the IRS before closing. NCB has experience working with title companies and tax professionals on these situations. We give you an honest picture of how the numbers work before you make any decisions.
Important: IRS lien situations are complex and we always recommend working with a tax professional or CPA alongside the real estate transaction. NCB handles the property purchase — a tax professional handles the IRS negotiation. Both processes can run simultaneously.
IRS Lien vs Property Tax Lien — Key Difference
Property tax liens are issued by Erie or Niagara County for unpaid local taxes. IRS liens are federal and attach to all your assets nationwide. Both appear on title and must be resolved at closing — but the IRS process involves a federal agency with its own payoff and discharge procedures, which is why title work on these transactions takes slightly longer than a clean-title sale.
IRS Lien — Common Questions
Can I sell my house if the IRS has a lien on it in Buffalo NY?
Yes — an IRS federal tax lien does not prevent you from selling your home. It must appear on the title disclosure and must be satisfied at or before closing. NCB purchases homes with active IRS liens — the lien payoff is handled through the Erie County title company at closing from the sale proceeds.
What happens to my IRS lien when NCB buys my home?
At closing, the title company obtains the IRS payoff figure. The IRS receives their full payoff directly from sale proceeds at closing. The IRS then issues a Certificate of Release, discharging the lien from the property. Any remaining proceeds after the IRS payoff and mortgage balance are paid to you.
What if I owe the IRS more than my home is worth?
If the IRS debt exceeds your home equity, a lien discharge or subordination may be required — the IRS can agree to release the specific property from the lien even if the full debt isn’t covered, under certain conditions. This requires IRS Form 14135 and negotiation. A tax professional should handle this process alongside the property sale.
Nickel City Buyers — IRS Tax Lien — Sell House Buffalo NY
Nickel City Buyers, LLC purchases homes with active IRS federal tax liens across Buffalo and Western New York. All federal liens handled at closing through Erie County title. Serving Erie County and Niagara County including Buffalo, Cheektowaga, Amherst, Tonawanda, West Seneca, Hamburg, Orchard Park, Lancaster, Depew, Kenmore, Lackawanna, Williamsville, East Aurora, Niagara Falls, Lockport, and North Tonawanda. Address: 3842 Harlem Rd STE 400-339, Cheektowaga, NY 14215. Phone: (716) 557-7005.