Current through Register Vol. 42, No. 11, August 30, 2024
(1) SCOPE. This regulation establishes a
procedure whereby third parties may be given information regarding the amount
required to release the state tax lien. It further provides for the release of
such information to purchasers and sellers of properties, and their agents, on
which a state tax lien has attached.
(2) DEFINITIONS. The following terms have the
meanings ascribed to them for purposes of this regulation.
(a) Third parties. Any entity or individual
which holds a lien on real or personal property of the taxpayer which competes
with any lien held by the Department. Such third parties may include
mortgagees, the Internal Revenue Service, judgment creditors, and other holders
or prospective holders of a security interest in property of the taxpayer.
Third parties may also mean any purchaser, closing attorney, escrow agent, or
real estate agent who is a party to a transaction in which the real or personal
property of a taxpayer is being transferred subject to the Department's
lien.
(b) Verifiable electronic
request. A request made through telecommunication channels (i.e., facsimile
machines or modems) that has some means of verification as to the authority of
the party requesting the information.
(3) PURPOSE. The purpose of this regulation
is to provide for the orderly determination of the amount of competing liens
attaching to property of the taxpayer.
(4) PROCEDURE.
(a) Whenever any third party wishes to secure
information regarding an outstanding tax lien, he shall provide the Department
with a written or verifiable electronic request for the information.
(b) Each written or verifiable electronic
request made by a third party must specify the following:
1. the party making the request;
2. the party's relationship to the
taxpayer;
3. the reason for the
request;
4. the property which is
being purchased or sold; and
5.
provide a copy of any instrument giving the third party a competing interest in
the property of the taxpayer.
(c) Whenever it is determined that the
withholding of such information pending receipt of a written or verifiable
electronic request will impair the ability of the taxpayer to close a
transaction relating to the transfer of property, such requirement may be
waived at the discretion of the Department.
(d) The Department reserves the right to deny
any request for information when it has not been adequately established to the
Department's satisfaction that the requesting party has a legitimate need for
the requested information.
Author: George E. Mingledorff
Statutory Authority: Act 92-186.
