- April 30, 1993
- All Issuing Offices
- Federal Tax Liens
On November 5, 1990, President Bush signed the "Omnibus Reconciliation Budget Act of 1990" (H.R. 5835).
This Bill extends the time that federal tax lien notices are effective. Federal tax liens are now effective for 10 years and 30 days from date of assessment unless extended by refiling for additional 10-year periods. The refiling must occur within the last year of the original filing.
This extended time for federal tax liens applies to taxes that are not yet barred.
Company Policy: New federal tax lien notices on or after November 5, 1990, are effective for 10 years and 30 days from the date of assessment. You must require a release or discharge of new federal tax liens unless that time has expired and no refiling has occurred. Also require releases or discharges of all federal tax lien notices filed before November 5, 1990, if the date of assessment is less than 10 years and 30 days ago.
Example: A federal tax lien notice against John Jones states that:
- the date of assessment is November 15, 1984, and
- the last date for refiling is December 15, 1990.
You are issuing a policy on a current sale and conveyance by John Jones on May 20, 1993, and no refiling or new filing of federal tax lien has occurred. You should require a release, discharge or certificate of nonattachment of the federal tax lien notice.
Foreclosure Recommendation: If you are furnishing title information or searches before foreclosures, also show federal tax liens unless barred under the new law.
For convenience, you may rely upon the recording date of the federal tax lien to calculate the time it is effective. If you rely upon recording dates, assume that the initial filing of federal lien is effective 10 years and 30 days and assume the refiling is effective 11 years.
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.