Section 301.7245-3, Discharge of Liens; (TD 9410)

Instructions for Preparing a

Notice of Nonjudicial Sale of Property and
Application for Consent to Sale
Table of Contents
Content

Page

What’s New
FAQs

1
1

Where to submit a Notice of Sale or Application for
Consent

2

Notice of Sale and Application for Consent
Requirements
General Information

Content

Page

2

General Instructions
Notice of Sale Instructions
Application for Consent Instructions
Privacy Statement
Form 14497, Notice of Nonjudicial Sale of Property

3
3
3
4
5–6

Form 14498, Application for Consent to Sale of Property
Free of the Federal Tax Lien

7–9

3

What’s New
1. Centralization for receipt of Notices of Non-Judicial Sale and Applications for Consent
2. Courtesy Forms with instructions for completing and submitting Notices of Sale and Applications for Consent.

FAQs
What is a Federal Tax Lien and a Notice of Federal Tax Lien
A federal tax lien is the government’s legal claim against property when there has been a neglect or refusal to pay a tax debt. The
Notice of Federal Tax Lien is a public document filed to alert creditors of the lien’s existence and to secure the government’s claim
to property subject to the lien. For more information see http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/
Understanding-a-Federal-Tax-Lien
What is a Notice of Sale and why is it required? A notice of sale informs the IRS of a foreclosure sale when the IRS is a secured
creditor. In order for property described in section 7425(b) to be sold at a nonjudicial sale free and clear of liens or title of the United
States, a notice of the sale must be provided in accordance with section 7425(c) or consent for the property to be sold free of the liens
or title of the United States must be obtained in accordance with section 7425(c). An effective Notice of Sale discharges or removes
any junior lien or claim the United States has in the property through the sale. It will not remove a lien or claim which is senior to the
foreclosing party’s interest.
How do I know if there is an IRS lien interest? In general, for nonjudicial foreclosure sale purposes, the United States has a lien or
claim against the property being foreclosed when a Notice of Federal Tax Lien attaching the property has been filed more than 30 days
prior to the sale.
Are there consequences for not providing a Notice of Sale? If the United States has a junior lien or claim against the property being
sold and a Notice of Sale is not provided to the IRS as required, then the sale does not disturb the lien and it remains attaching to the
property. After the sale, the foreclosure sale purchaser would need to apply for a Certificate of Discharge of Property From Federal
Tax Lien. See Publication 783, Application Form 14135, and the video Selling or Refinancing when there is an IRS Lien.
What is included in a Notice of Sale? A Notice of Sale must contain the information identified as required in the Notice of Sale
Instructions section. The Notice is considered inadequate if it does not include all the required information. The IRS notifies the party
identified as submitting the Notice of Sale not less than five days before the foreclosure sale of the inadequacy. Letter 1840, Notice of
Inadequacy, is used for this purpose. Unless an adequate Notice of Sale is provided at least 25 days before the sale, the Notice of Sale
will not be effective to discharge or remove the lien or title of the United States.
What happens if the Notice of Sale is not effective? The liens or claims of the United States are not discharged. Consent to Sale of
Property Free of the Lien may be applied for prior to the sale. This consent is the IRS’ agreement allowing the foreclosure sale to
discharge the property of the liens or claims of the United States where the Notice of Sale will not be effective.

Publication 786 (8-2013)

Catalog Number 46757E

Department of the Treasury – Internal Revenue Service

www.irs.gov

Where to Submit a Notice of Sale or Application for Consent
For Certified or Registered Mail Service:
IRS, Attn: Manager, Centralized Lien Operation
P.O. Box 145595, Stop 8420G NJS Team
Cincinnati, OH 45250-5595

For Personal Service:
Collection Advisory Group Manager (for the geographical area where the
Notice of Federal Tax Lien was filed. Use Publication 4235, Collection
Advisory Group Addresses, to find the Collection Advisory office where you
would personally deliver your notice or application.)

► For Your Convenience
• Form 14497, Nonjudicial Notice of Sale is include as assistance in providing the Notice of Sale.
• Form 14498, Application for Consent to Sale of Property Free of the Federal Tax Lien is included as assistance in providing an
application for Consent.

Notice of Sale Requirements
1. Submit in writing;
2. Send by registered or certified mail or by personal service;
3. Send to the Internal Revenue Service (IRS) official, office and address
specified in Where to Submit a Notice of Sale or Application for Consent;
4. Provide the required information in the Notice of Sale Instructions (*items
marked optional are not required) and
Additional Requirements
Non-Perishable Property
5. Send at least 25 days before the sale or
date of termination of the contract for
deed. The 25 day period commences
upon receipt of an adequate notice of
nonjudicial sale. The date of receipt
for notices sent by certified or
registered mail is determined by the
U.S. Postal Service postmark date.
► WARNING: A Notice of Sale not
received in the manner described in this
section, will not be effective to remove
the federal tax lien from the property or
extinguish any title held by the United
States, without the express consent of the
United States. (See Consent to Sale of
Property Free of the Lien).
► POSTPONEMENTS: Where a sale
is postponed, if a Notice of Sale was
required and provided, notify the IRS the
same way local law requires it for other
secured creditors. Where a Notice of
Sale was not required for the original
sale, but the new sale date is more than
30 days after the postponement and a
notice of lien was filed at least 30 days
before the rescheduled sale, a notice of
sale must be provided following the
directions in this publication.
► ACKNOWLEDGEMENT
Only the original of a Notice of Sale is
required. If acknowledgement of receipt
is desired, include a duplicate copy of
the original Notice of Sale along with a
written request for acknowledgement.
An acknowledgement will be provided
indicating the date and time of receipt.

Publication 786 (8-2013)

Additional Requirements
Perishable Property
5. Send at any time before the sale;
6. Provide the reasons the property is
liable to perish or become greatly
reduced in value if kept a
minimum of 25 days, or reasons it
cannot be kept for that period of
time without incurring great
expense;
7. Hold the proceeds (exclusive of
costs) of the sale as a fund, for not
less than 30 days after the date of
the sale, subject to the liens and
claims of the United States, in the
same manner and with the same
priority as the liens and claims of
the United States had with respect
to the property prior to sale.
► WARNING: The seller becomes
personally liable for the amount of
the liens and claims of the United
States if they do not hold these funds
for the IRS.
► DEFINITION OF
PERISHABLE
Any tangible personal property
which, in the reasonable view of the
person selling the property, is liable
to perish or become greatly reduced
in price or value by keeping, or
cannot be kept without great expense.

Catalog Number 46757E

Application for Consent
1. Submit in writing;
2. Made with a declaration under penalties of
perjury that the information is true, correct,
and complete; and
3. Send to the Internal Revenue Service (IRS)
official, office and address specified in Where
to Submit a Notice of Sale or application for
Consent
► WARNING: The IRS cannot consent after
the date of the sale.
4. Provide the required Information in the
Application for Consent Instructions Provide
the required Information in the Notice of
Sale Instructions (*items marked optional are
not required, and
5. Provide Adequate Protection.
► ADEQUATE PROTECTION of the
government’s claims must be provided.
Protection is considered adequate if:
• The taxpayer has no equity in the property, or
• The taxpayer’s interest in the property being
sold has been assigned to the IRS, C/O the
Centralized Lien Operation Manager,
Collection Group Manager for the Centralized
Lien Operation Field Office Resource Team
(FORT), or Collection Advisory Group
Manager, or
• Any proceeds in excess of prior encumbrances
have been assigned to the IRS, C/O the
Centralized Lien Operation Program Manager,
Collection Group Manager for the Centralized
Lien Operation FORT, or Collection Advisory
Group Manager, or
• The sale divests the taxpayer of all rights, title
and interest in the property, and the proceeds
are to be held as a fund subject to the liens and
claims of the United States in the same
manner and priority as the liens and claims
were held on the discharged property, or
• There are other known circumstances
acceptable to the Centralized Lien Operation
Program Manager, Collection Group Manager
for the Centralized Lien Operation FORT, or
Collection Advisory Group Manager.

Department of the Treasury – Internal Revenue Service

www.irs.gov

General Information
Notice of Sale: What Is It and Why Is it
Required
A Notice of Sale is a document or
documents used by the foreclosing party to
inform the Internal Revenue Service (IRS)
of a nonjudicial foreclosure sale. It allows
the IRS to identify what, if any, interest
the United States has in the property being
sold. In the case of real property, it allows
the IRS to begin considering whether to
exercise its redemption rights after the
sale. More information can be found on
www.irs.gov about federal tax liens.
A Notice of Sale is required when the IRS
has a lien or claim on the property to be
sold which is junior to the foreclosing
party’s claim. When properly noticed, an
IRS junior interest is discharged from the
property through the foreclosure sale.
Redemption
When real property is sold, the United
States retains the right to redeem the
property from the foreclosure sale
purchaser. If the IRS redeems the property
for the United States, it will resell the
property for the purpose of obtaining
money which can be applied to the
taxpayer’s tax lien debt.
Consent to Sale of Property Free of the
Lien
Consent to Sale of Property Free of the
Lien is the IRS’ agreement allowing the
foreclosure sale to discharge the property
of the liens or claims of the United States.
When the foreclosure sale will not be
effective to discharge the property being
sold from the liens or claims of the United
States, the IRS may consent to the sale of
the property free of the liens. Consent can
only be provided by the Centralized Lien
Operation Program Manager, the
Collection Group Manager for the
Centralized Lien Operation Field Office
Resource Team (FORT), or the Collection
Advisory Group Manager for the IRS
office where the sale is to take place.

General Instructions

Certain information is required by
regulation to be included in the Notice of
Sale or Consent Application. Items marked
optional are not required. The instructions
will indicate if it is required or optional
information. The forms themselves are not
required.

Publication 786 (8-2013)

Notice of Sale
Instructions

(Form 14497, Notice of Nonjudicial Sale of Property)

Required
1. Name and address and telephone
number of the person submitting the
notice (please include a fax number);
OPTIONAL (Additional Names and
Addresses):
• The names and addresses of the
Current Beneficiary/Mortgagee,
Service Provider (representing the
Current Beneficiary / Mortgagee under
a servicing agreement), Original
Beneficiary/Mortgagee
• The certified mail control number
• The Foreclosing Instrument’s file
number
• The Foreclosing Instrument’s
recording date.
Required
2. A copy of each Form 668(Y)(c), Notice
of Federal Tax Lien, effecting the
property to be sold -OR- from the
recorded Notice of Federal Tax Lien,
you may provide the following
information:
a. The name of the IRS Area (District)
office or the place where the notice
was prepared and signed;
b. The name and address of the
taxpayer; and
c. The date and place where the notice
of lien was filed.
OPTIONAL (Taxpayer Identification
and Lien Notice Identification
Numbers):
• The social security number, with first
five digits redacted, of the person
named in the Notice of Federal Tax
Lien –or– the Employer Identification
Number of the Business named in the
Notice of Federal Tax Lien
• If known, the redacted secondary
social security number of any spouse
whose name is listed on the Notice of
Federal Tax Lien
• If the applicable Notice of Federal Tax
Lien is not being included in the
Notice of Sale, list the System Lien
Identification Number (SLID) found in
the top right hand box of the lien
notice document, if available.
Required
3. A detailed description, including the
location of the property affected by the
tax lien.
a. For real property, give the complete
physical address; the legal description
contained in the title or deed of the
property; if available, a copy of the
abstract of title,
b. For personal property, include serial
or vehicle numbers, as appropriate, (e.
g. 2002 Cessna twin engine airplane,
serial number AT919000000000X00)

Catalog Number 46757E

c. For perishable property, provide the
reasons the property is liable to perish
or become greatly reduced in value if
kept a minimum of 25 days, or
reasons it cannot be kept for that
period of time without incurring great
expense.
OPTIONAL: (Real Property
Description):
• Real Property, include the type of
property (e.g. 3-bedroom single family
house, 4-family rental).
4. The date, time, place, and terms of the
sale of the property OR the date the
taxpayer’s interest in the property is
terminated; and
Required
5. The approximate amount of principal
obligation including interest due the
person selling the property and a
complete description of any expenses.
This may include legal expenses, selling
costs, maintenance fees and expenses,
which will be charged against the sale
proceeds. NOTE: not all expenses will
be reimbursable.
OPTIONAL: (Property Value Details):
• Estimated Fair Market Value
• Estimated amount of any anticipated
foreclosure sale surplus or excess.
NOTICE OF SALE
ACKNOWLEDGEMENT
Check the box, if an acknowledgment of
the Notice of Sale is being requested.

Application for Consent
(Form 14498, Application for Consent to Sale of
Property Free of the Federal Tax Lien)

Required
1. Provide applicant name, address, and
telephone number (please include a fax
number);
OPTIONAL (Additional Names and
Addresses):
• The names and addresses of the
Current Beneficiary/Mortgagee,
Service Provider (representing the
Current Beneficiary / Mortgagee under
a servicing agreement), Original
Beneficiary/Mortgagee
• The certified mail control number
• The Foreclosing Instrument’s file
number
• The Foreclosing Instrument’s
recording date.
Required
2. A copy of each Form 668(Y)(c), Notice
of Federal Tax Lien, effecting the
property to be sold -OR- from the
recorded Federal tax lien, you may
provide the following information:
a. The name of the IRS Area (District)
office or the place where the notice
was prepared and signed;

Department of the Treasury – Internal Revenue Service

www.irs.gov

b. The name and address of the
taxpayer; and
c. The date and place where the notice
of lien was filed.
OPTIONAL (Taxpayer Identification
and Lien Notice Identification
Numbers):
• The social security number, with first
five digits redacted, of the person
named in the Notice of Federal Tax
Lien –or– the Employer Identification
Number of the Business named in
theNotice of Federal Tax Lien
• If known, the redacted secondary
social security number of any spouse
whose name is listed on the Notice of
Federal Tax Lien
• If the applicable Notice of Federal Tax
Lien is not being included in the
Notice of Sale, list the System Lien
Identification Number (SLID) found in
the top right hand box of the lien
notice document, if available.
REQUIRED
3. A detailed description, including the
location of the property affected by the
tax lien.
a. For real property, give the complete
physical address; the legal description
contained in the title or deed of the
property; if available, a copy of the
abstract of title,
b. For personal property, include serial
or vehicle numbers, as appropriate,
(e.g. 2002 Cessna twin engine
airplane, serial number
AT919000000000X00),
c. For perishable property, provide the
reasons the property is liable to perish
or become greatly reduced in value if
kept a minimum of 25 days, or
reasons it cannot be kept for that
period of time without incurring great
expense.
OPTIONAL (Real Property
Description):
• Real Property, include the type of
property (e.g., 3-bedroom single
family house, 4-family rental).
REQUIRED
4. The date, time, place, and terms of the
sale of the property -OR- the date the
taxpayer's interest in the property
terminated.
REQUIRED
5. The approximate amount of principal
obligation including interest due the
person selling the property and a
complete description of any expenses.
This may include legal expenses, selling
costs, maintenance fees and expenses,
which will be charged against the sale
proceeds. NOTE: not all expenses will
be reimbursable.

Publication 786 (8-2013)

OPTIONAL (Additional Property
Value and Creditor Details):
• Estimated Fair Market Value - Attach
a legible copy of a professional
appraisal by a disinterested third party;
a county valuation; broker opinion of
property; informal valuation of
property by disinterested third party;
proposed selling price (for property
being sold at auction); or other, if
available.
• Amount due lien holders superior to
the Federal Tax Lien, if known. List
any encumbrances (liens or claims)
against the property that came into
existence before the United States’ lien
interest or which have priority over the
lien, if known. Include name and
address of holder: description of
encumbrance, e.g. mortgage, state lien,
etc.; date of agreement; original
amount and interest rate; current
amount due; and family relationship of
the holder, if applicable.
• Estimated amount of any anticipated
foreclosure sale surplus or excess
proceeds.
CONSENT APPLICATION
ACKNOWLEDGEMENT
Check the box, if an acknowledgment of
the Consent Application is being
requested.
REQUIRED
6. Provide the basis for requesting the
consent;
REQUIRED
7. Include a statement indicating what
adequate protection is being afforded to
the United States lien or title;
REQUIRED
8. Attach any documents needed to
substantiate the application; and
REQUIRED
9. Include the following declaration over
your signature and title. “Under the
penalties of perjury, I declare that I have
examined this application (including
any accompanying schedules, exhibits,
affidavits, and statements) and to the
best of my knowledge and belief it is
true, correct, and complete.”

Internet Sales
A Notice of Sale should be given to the
Collection Advisory Group Manager in the
IRS office where the property is located,
when the sale is conducted over the
Internet.
NOTE: All other provisions referred to in
this publication apply.

Catalog Number 46757E

Privacy and Paperwork Reduction Act
Notice
We ask for the information on these forms
to carry out the Internal Revenue laws of
the United States. The information is used
to process your Notice of Sale or
Application for Consent. You are not
required to notify us of a non-judicial sale,
or to apply for consent to the sale;
however, if you want a federal tax lien to
be discharged by the sale, section 7425
requires you to provide certain
information, as indicated. Section 6109
requires you to provide the requested
identification numbers. Failure to provide
this information may delay or prevent
processing your Notice or Application;
providing false or fraudulent information
may prevent discharge of the lien and may
subject you to penalties.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records relating
to a form or its instructions must be
retained as long as their contents may
become material in the administration of
any Internal Revenue law. Generally, tax
returns and return information are
confidential, as stated in section 6103.
However, section 6103 authorizes us to
disclose the information pursuant to the
Code. We may disclose this information to
the Department of Justice for civil and
criminal litigation, and to cities, states, the
District of Columbia, and U.S.
commonwealths and possessions for use in
administering their tax laws. We may
contact you, your representative, or any
person to obtain additional information
about the transaction. We may also
disclose this information to other countries
under a tax treaty, to federal and state
agencies to enforce federal nontax
criminal laws, or to federal law
enforcement and intelligence agencies to
combat terrorism.
The time needed to complete and file this
form will vary depending on individual
circumstances. The estimated burden for
individuals filing this form is approved
under OMB control number 1545-0854.
The estimated burden for those who file
this form is shown below.
• Recordkeeping 2 hr., 45 min.
• Learning about the law or the form 2 hr.
• Preparing the form 1 hr., 30 min.
• Copying, assembling, and sending the
form to the IRS 85 min.
If you have comments concerning the
accuracy of these time estimates or
suggestions for making these forms
simpler, we would be happy to hear from
you. You can write to Internal Revenue
Service, Attn: Manager, Centralized Lien
Operation, P.O. Box 145595, Stop 8420G
NJS Team - COMMENTS, Cincinnati,
OH 45250-5595.

Department of the Treasury – Internal Revenue Service

www.irs.gov