15056 Escrow Agreement

Form

Department of the Treasury - Internal Revenue Service

15056

OMB Number
1545-0328

Escrow Agreement

(May 2018)
This agreement is entered into by and between

, (hereinafter “Escrow Agent”);
Escrow Agent

, Executor, Estate of
Executor

Decedent

(hereinafter "Estate"), and the United States of America, by and through the Internal Revenue Service (hereinafter “IRS”).

Witnesseth
1.

. A lien arose on the date of death securing

died on
Decedent

Date of death

payment of

federal estate tax liability. The lien attached to all assets
Decedent's

included in the gross Estate.
2.

The Estate Tax Return, Form 706, for the Estate of

is due, without
Decedent

.

extension, on
Due date of Form 706

3.

On

the Estate submitted an application for certificate discharging property subject to estate tax lien
Date

(hereinafter “Application”).
4.

That Estate submitted the Application to facilitate the desired sale of
Description of asset

(hereinafter “Subject Property”). (An Exhibit A can be attached
Description of asset

and referenced here if additional room is needed for the description of asset(s) to be sold).
5.

That Subject Property is encumbered by an estate tax lien in favor of the IRS.

6.

That the parties hereto declare that it is in their best interest that the Subject Property described in paragraph number 4 above be
sold and that gross proceeds of sale, less the expenses approved by the IRS (hereinafter “Escrow Funds”), be held in escrow in
accordance with this Agreement (the “Escrow Funds”).

7.

That for purposes of facilitating the sale, upon approval of the Application, the signing of the Escrow Agreement (Agreement) and
depositing of the Escrow Funds pursuant to this Agreement, the IRS will approve the Application and will discharge any lien, claim
or interest in the Subject Property in consideration of the Escrow Funds being held as a fund subject to the liens and claims of the
IRS in the same manner and with the same priority that IRS liens and claims had with respect to the discharged Subject Property.

8.

That the Escrow Funds arising from the sale of the Subject Property will be paid directly to the Escrow Agent by the purchaser of
the Subject property.

9.

That the Escrow Agent will hold the Escrow Funds, in trust, in an interest-bearing account in a mutually agreeable United States
institution, including a bank, credit union, investment firm, etc.

10. That the duties and responsibilities of the Escrow Agent will be limited to those expressly set forth herein, to hold the Escrow Funds
in trust and disburse funds under the conditions set forth herein.
11. That the Estate agrees to be liable for all IRS approved costs and attorney's fees incurred by the Escrow Agent in administering
this Agreement.
WHEREFORE, it is mutually agreed and understood by the parties hereto that:
12. That in order for the Estate to sell the Subject Property free and clear of the aforementioned federal estate tax lien, a Certificate
Discharging Property Subject to Estate Tax Lien will be provided by the IRS under the conditions set forth in this Agreement. The
net proceeds from the sale of the Subject Property (“Escrow Funds”) shall remain subject to the estate tax lien, in the same
manner, with the same priority, and with all of the rights the IRS had with respect to the discharged Subject Property.
13. The sale of the Subject Property shall divest the Estate of all right, title and interest in the Subject Property.
14. The Escrow Funds shall be paid directly to the Escrow Agent by the purchaser of the Subject Property, payment to be made by
cashier's check payable, or wire transfer to the Escrow Agent.
15. That the Escrow Agent shall deposit the Escrow Funds in a mutually agreeable United States financial institution, including a bank,
credit union, investment firm, etc. All interest which accrues on the subject account held by the financial institution shall be added
to such account, become part of the Escrow Fund and be included in the funds to be finally distributed.
16. By the end of the first week of each calendar-year quarter (first week in January, April, July, and October), the Escrow Agent will
mail the IRS and Estate signatories to this Agreement with the most recent quarterly account statement(s) for the amount held in
escrow under this agreement.
Catalog Number 71272E

www.irs.gov

Form 15056 (5-2018)

Page 2
17. The Escrow Agent shall distribute to the IRS upon written notification from the IRS of the issuance of a final determination by the
IRS or a court with jurisdiction over the Estate and the IRS of the amount of the estate tax owed, or otherwise upon mutual
agreement between the Estate and the IRS, the lesser of (a) the amount sufficient to satisfy the estate tax liability in full, including
all applicable interest and penalties, or (b) the total amount of Escrow Funds being held by the Escrow Agent pursuant to this
Agreement.
However, if there are other outstanding taxes due to the IRS, other than the subject estate tax, those other taxes shall be paid in
full, including interest and penalties, before any balance of the Escrow Funds are paid to the Estate.
18. The IRS retains the right to enforce the estate tax lien by levy or seizure of the Escrow Funds in the possession of the Escrow
Agent at any time. However, the IRS agrees not to exercise the right to levy or seize the Escrow Funds until one of the following
takes place (the “Disbursement Conditions”):
a. A return is received by the IRS or the IRS prepares a substitute for return, and
1. The liability is assessed, but remains unpaid after 10 calendar days following notice and demand for payment by the IRS;
2. An audit of the Estate Tax Return has been completed and administrative and judicial remedies have been exhausted, and
the liability has been assessed, but remains unpaid after 10 calendar days following notice and demand by the IRS; or
3. Otherwise upon mutual agreement between the Estate and the IRS, or
4. The IRS determines that assessment and/or collection of the estate tax liability is in jeopardy.
19. That the Escrow Agent may not release the Escrow Funds to anyone without the express written consent of the IRS.
20. That the Estate has the right to instruct the Escrow Agent to release all or part of the Escrow Funds to the IRS at any time without
the express written consent of the IRS.
21. The IRS will issue written instructions directing the Escrow Agent to release the balance of the funds in the escrow account to the
Estate after a final determination has been made by the IRS or a court with jurisdiction over the Estate and the IRS of the amount
of estate tax owed and the tax has been paid in full, including applicable interest and penalties or otherwise upon mutual
agreement between the Estate and the IRS.
22. No provision of any purchase contract or escrow instructions regarding the Subject Property may be inconsistent with this
Agreement and any provisions of said purchase contract or escrow instructions which are inconsistent with this Agreement shall be
null and void and of no effect for all purposes.
23. The Escrow Agent is a mere trustee of the Escrow Funds whose duties and obligations are limited to those expressly set forth
herein, to hold the Escrow Funds in trust and disburse funds only under the conditions set forth herein.
24. The Estate agrees to be liable for all IRS approved reasonable costs and attorney's fees incurred by Escrow Agent arising from or
related to this agreement.
25. Escrow Agent shall charge an escrow service fee of
, which shall be payable by the Estate upon
$ amount or percentage of total
written approval of the IRS.
26. Nothing herein waives the statute of limitations for assessment or collection of the estate tax liability of the Estate. Nothing herein
constitutes a waiver of rights or remedies available to the Estate or the IRS.
27. This Agreement shall become effective upon the signature of all the parties whose names appear below.

Estate of (decedent)

Title of Internal Revenue Representative

Name of Escrow Institution

Estate Executor (print name)

Internal Revenue Service (print name)

Escrow Agent (print name)

Estate Executor signature

Internal Revenue Service signature

Escrow Agent signature

Date

Date

Date

Paperwork Reduction Act
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 required by section 6103.
The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is: Preparing and sending
the form to the IRS should involve 30 minutes. The estimated burden for individual taxpayers filing this form is approved under OMB control number
1545-0328 . If you have comments concerning the accuracy of the time estimate or suggestions for making this form simpler, we would be happy to hear
from you. You can send your comments to Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526,
Washington, DC 20224. Do not send Form 15056 to this address.
Catalog Number 71272E

www.irs.gov

Form 15056 (5-2018)