Payment of Excess Expenses Incurred by Purchaser in Connection With the Redemption of Real Property Under I.R.C. Sec. 7425

Samenvatting

This document contains a proposed regulatory amendment relating to the payment of excess expenses incurred by a purchaser at a nonjudicial sale in connection with redemptions of real property by the United States under Internal Revenue Code section 7425. The existing regulations provide guidelines for submitting claims for excess expenses incurred by a purchaser, or his or her successor in interest, after a foreclosure sale and before redemption, but do not provide a cutoff date for submission of claims for excess expenses. The intent of the proposed regulations is to provide such a cutoff date. These proposed regulations provide that when requested by the district director, a purchaser at a nonjudicial foreclosure sale must submit a written claim for excess expenses within 30 days of the request for such claim to be considered. If, however, the purchaser does not submit a claim at that time, but does incur excess expenses, the purchaser may submit a claim within 30 days after the redemption. Failure to submit a claim within that time period forecloses the right to do so.