- October 14, 1993
- All Issuing Agents in Michigan
- Federal Tax Liens on Entireties Property
We have recently been advised that the Internal Revenue Service is now taking the position that Federal Tax Liens incurred by one spouse attach to property held by both husband and wife as tenants by the entireties. We must assume that the Internal Revenue will attempt to enforce Federal Tax Liens that fall into this category. On all commitments for title insurance, you must now show Federal Tax Liens filed against one of the parties holding title as tenants by the entirety and require the discharge of the tax lien.
The Internal Revenue Service will now entertain written applications for discharge or subordination of the tax liens. The taxpayer may make written application to the Special Procedures Department. Their personnel will calculate the amount needed to obtain a discharge.
Please distribute this Bulletin to all underwriting and escrow personnel in your office.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.