Irs Tax Delinquent Mortgages - PDF by fim49992


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									Georgia Department of Revenue

        Georgia Department of Revenue

• alias execution --(O.C.G.A. 48-3-7)
• calendar week -- Sunday to Saturday
• defaulter -- delinquent taxpayer, or no
  return filed
• execution -- the process and/or form used
  for levying on and selling enough of a
  delinquent taxpayer’s property to satisfy
  unpaid taxes.
            Georgia Department of Revenue

• execution docket — tax commissioner’s execution docket
  or GED in clerk of superior court’s office
• fieri facias (Fi. Fa.) — means that you “cause it to be
  done.” A judicial writ directing the sheriff to satisfy a
  judgment from the debtor’s property. Applies to personal
  and real property. A term used interchangeably with
• grantee — the person to whom property is transferred (the
• grantor — the person who transfers the property to
  another (the seller).
• in personam — the legal process directed against a
• in rem — the legal process directed against property.
           Georgia Department of Revenue

• legal description — a detailed description of real
• levy — the process whereby a sheriff or other state
  official empowered by writ or other judicial directive
  actually seizes, or otherwise brings within his or her
  control, a delinquent taxpayer’s property to satisfy the
• lien — a claim, encumbrance, or charge on a taxpayer’s
  property to obtain payment of overdue taxes.
• life estate — an estate whose duration is limited to the
  life of the party holding it, or some other person. A legal
  arrangement whereby the beneficiary (i.e. the life tenant)
  is entitled to the income from the property during his or
  her life. Upon the death of the life tenant, the property
  goes to the person holding the remaining interest, or to
  the grantor by reversion.
           Georgia Department of Revenue

• mortgagee — the person who takes, holds, or receives
  a mortgage.
• mortgagor — the debtor; the party who mortgages the
  property. The party to a mortgage who gives legal title
  or a lien to the mortgagee in order to secure the
  mortgage loan.
• nulla bona — the name of the return made by the sheriff
  to a writ of execution, when he or she has not found any
  goods of the defendant within his or her jurisdiction on
  which to levy.
• pointing out — the act of a delinquent taxpayer in
  pointing out or selecting property that he or she prefers
  to be levied on (O.C.G.A. 48-3-4).
• quitclaim — the release of a claim.
           Georgia Department of Revenue

• security deed — a deed pledging property to secure a
• statute of limitations — statutes of the federal
  government and various states setting maximum time
  periods during which certain actions can be brought or
  rights enforced.
• summons of garnishment — an order issued by an
  appropriate officer to a person owing the delinquent
  taxpayer money or holding property of the delinquent
  taxpayer which may be used to pay the taxes and costs
  due (O.C.G.A. 48-3-12).
• tax deed — the deed given upon a sale of real property
  made for non-payment of taxes. The deed whereby the
  officer of the law undertakes to convey the title of the
  property to the purchaser at the tax sale. This is
  sometimes called a sheriff’s deed.
          Georgia Department of Revenue

• warranty deed — a deed which conveys the
  title to property whereby the seller guarantees
  the title to be good and unencumbered except
  as stated and agrees to defend and protect the
  purchaser against any loss that may arise in the
  future from any defect in the title at the time of
• writ — a written court order or a judicial process,
  directing that a sheriff or other judicial officer do
  what is commanded by the writ; or giving
  authority and commission to have it done.
                                        30 Day Notice
                                     before issuing Fi.Fa.
30 Days
                                  Issue and Record Fi.Fa.
                                     48-3-3 & 48-5-161

 5 Days
                                Notice to Owner and Tenant
                                   within 5 days of Levy

            Notice to Holder of Mortgages & Leins 20 days prior to Advertising

  20 Days
                                Advertising – 4 consecutive
                                   weeks before Sale
                                     9-13-140 & 142

                10 day notice
  4 Weeks       to Defendant
                                                                     Notice to IRS 25 days before Sale
                                                                            (if Federal Tax Lien)
                                                                            IRS Publication 786

                       Sale Day
                First Tuesday of Month                                           25 Days
          Georgia Department of Revenue

           Summary of Flowchart
•   Tax Due Date 12/20/08
•   FIFA Letter mailed on 12/21/08
•   Record FIFA on 1/21/09
•   Levy on Property 1/22/09
•   Notice to Owner or Tennant by 1/27/09
•   Notice to Mortage/Lein Holder- 1/27/09
      20 days Prior to Advertising
        Georgia Department of Revenue

• Advertise Property 4 Consecutive Weeks
   Start week of 2/16/09-3/9/09
• Last Notice to Defendant-10 day before
  Sale- Mailed before 3/29/09
• IRS Notice if Necessary-25 days before
  sale-Mail by 3/14/09
• Sale Property on 4/7/09-First Tuesday of
   Georgia Department of Revenue

        Georgia Department of Revenue

48-3-3. Executions by tax collectors and

  (1) "New owner" means the most recent
subsequent owner who has purchased such
property during the year after January 1, but on or
after the due date of that tax bill year and whose
deed has been duly recorded in the records of the
clerk of the superior court for that county.
        Georgia Department of Revenue

(2) "Owner of record" means the owner
  whose name appears in the deed record
  as the owner as of January 1 of that tax
  bill year.
       Georgia Department of Revenue

(e) (1) Whenever technologically feasible,
the tax collector or tax commissioner, at
the time tax bills or any subsequent
delinquent notices are mailed, shall also
mail such bills or notices to any new owner
that at that time appear in the records of
the county board of assessors. The bills or
notices shall be mailed to the address of
record as found in the county board of
assessors' records.
         Georgia Department of Revenue

 (2) A new purchaser of property shall not be
required to pay the interest specified in Code
Section 48-2-40, or the penalty specified in
Code Section 48-2-44, until 60 days after the
tax collector or tax commissioner has
forwarded a tax bill to the new purchaser in
accordance with paragraph (1) of this
subsection. This paragraph shall apply only to
the tax bill applicable to the year in which the
property was purchased.
             Georgia Department of Revenue

(d) No execution shall be issued against any person who is not the record
owner of the property on the day that the taxes become delinquent if,
within 90 days from the due date, that person has provided satisfactory
proof to the tax collector or tax commissioner that the property has been
transferred by recorded deed and the liability for the payment of ad
valorem taxes has been assigned to the vested transferee by written
agreement or contract. In such cases, the execution shall be issued
against the person who is the new record owner of the property on the
date that taxes became delinquent only after such new owner has been
sent a notice of the delinquent tax bill and that the tax collector or tax
commissioner intends to issue a tax execution in the new owner's name
against such delinquent property if the bill and all applicable interest and
other charges are not paid within 30 days of the date of the notice.
       Georgia Department of Revenue

    Who is Execution Issued against?

• Old Owner               • New Owner
  – No proof of new         – Old owner brings
    ownership                 proof
  – No new PT-61            – New PT-61
  – Longer than 90 days     – When proper notice
    after due date            given
       Georgia Department of Revenue

              What to do--

• notice mailed first class
  – address of record on PT-61

• execution already issued
  – shall be affirmatively cleared and vacated
Georgia Department of Revenue


                • 48-4-23
                • Individuals
                  prohibited from tax
                  sale purchase
        Georgia Department of Revenue

          Prohibited individuals

• A tax commissioner
• Any person employed in the office of the
  tax commissioner
• Any person working on behalf of the tax
         Georgia Department of Revenue

            Penalty for Violation
• shall be guilty of a misdemeanor
• imprisonment for a period of not more than
  one year
• And/Or a fine not to exceed $1,000.00
• Must Void Sale
        Georgia Department of Revenue

            Sheriff’s Deed

• Completed and Signed in Tax Office
• Recorded in Clerk’s Office
• Given to the Purchaser after payment
         Georgia Department of Revenue

                 Excess Funds
• 48-4-5 Code Section
• Send Notice to Record Owner/Security Deed
  Holder/Parties of Recorded Interest within 30
  days of Sale
• Notice Should Contain:
  1. Description of Land Sold
  2. Date Property Sold
  3. Name & Address of sale purchaser
  4. Total Sale price
  5. Amount of excess funds held by TC.
         Georgia Department of Revenue

           Excess Funds-Cont’d

• Interpleader may Be filed –Superior Court can
  decide who receives Excess
• If Excess Not Claimed -After 5 years amount is
  sent to GA DOR - Unclaimed Property Section
• Remittance Form & Instructions on GA DOR
   Georgia Department of Revenue

            • 48-4-42
            • Fee = 20% for the first year
            • 10% for every year
            • Foreclosure—consult an
            • Court Case—requires
       Georgia Department of Revenue

             Judicial Sales
• Conducted by Superior Court Judge
• Consult County Attorney
          Georgia Department of Revenue

                Mobile Homes
•   Personal Property
•   No 30 day letter required
•   No redemption period
•   Same procedures apply
                                   Legal Costs and Fees                                                 Corresponding O.C.G.A.
                                                                                                            State Statute(s)

Principal Tax
$1.00 Minimum or One-Percent Per Month Interest                                        48-2-40; 48-3-8; 48-5-24
Sub Total, Tax and Interest
Five-Percent Late Payment Penalty - Applicable to Counties with Installment Payments   48-5-24
10-Percent Penalty after 90 Days Except on Homestead Bills $500 or Less                48-2-44
Fi. Fa.’s                                                                              15-16-21
Sub Total Due
Levy Administrative Fee (Five-percent of tax with a $50 minimum / $250 maximum)        48-5-161

Ex-Officio Sheriff Commissions                                                         15-16-21
Fieri Facias Issuance                                                                  48-5-163
Fieri Facias Recording                                                                 15-6-77.3
Fieri Facias Collection (0-$100 / $100 +)                                              15-16-21 (B) (20); 15-16-21 (B) (21)
Fieri Facias Cancellation                                                              15-6-77 (C) 2
Dishonored Check or Instrument (Penalty)                                               48-5-146
Dishonored Check or Instrument (Service Charge)                                        16-9-20
Each Levy or Fieri Facias                                                              15-16-21
Settling                                                                               15-16-21
Advertising                                                                            9-13-143
Tax Deed                                                                               15-16-21
Bill of Sale (Personal Property)                                                       15-16-21
Deed Recording                                                                         15-6-77.3C (1)
Retaining Fee (All Recording)                                                          7-14-51 (B)
Total Legal Costs and Fees
Total Due or Beginning Bid
Bid Overage                                                                               48-4-5
                                                                                                          Previous Fee   New Fee
    Code Section     Office/Officer                               Purpose of Fee
                                                                                                            Amount       Amount
15-6-77(g)(2)      Superior Court     Uncertified copies of documents, if no assistance required             $0.25        $0.50
15-6-77(g)(9)      Superior Court     Certificate of appointment and reappointment to notaries public        $13.00      $20.00
15-6-77(g)(10)     Superior Court     Registering and filing trade names                                     $8.00       $15.00
15-6-77(g)(11)     Superior Court     Issuing subpoena, signed and sealed                                    $1.00        $5.00
                                      Preparing and indexing record for the Supreme Court/Court of
15-6-77(g)(12)     Superior Court                                                                            $1.50       $10.00
                                      Appeals, per page
15-6-77(g)(12)     Superior Court     Transcript of evidence and proceedings, recopying not required         $5.00       $35.00
                                      Copy of record of appeal in criminal cases w/ capital felony; per
15-6-77(h)(6)      Superior Court                                                                            $1.50        $5.00
15-9-60(e)(1)      Probate Court      Initial estate proceeding                                              $90.00      $130.00
15-9-60(f)(1)      Probate Court      Minor Guardianship proceeding                                          $60.00      $75.00
15-9-60(f)(2)(A)   Probate Court      Petition of guardian for leave to sell (minor)                         $50.00      $70.00
15-9-60(f)(2)(B)   Probate Court      Petition of compromise doubtful claim of minor                         $50.00      $70.00
15-9-60(f)(2)(C)   Probate Court      Petition for leave to encroach on corpus (minor)                       $25.00      $30.00
15-9-60(f)(2)(E)   Probate Court      Inventory or annual, intermediate, or final return (minor)             $25.00      $30.00
15-9-60(f)(2)(F)   Probate Court      Petition or motion for attorneys' fees (minor)                         $50.00      $70.00
15-9-60(f)(2)(G)   Probate Court      Petition to terminate temporary guardianship of minor                  $25.00      $30.00
15-9-60(f)(2)(H)   Probate Court      Other unspecified guardianship matter (minor)                          $25.00      $30.00
15-9-60(g)(2)(A)   Probate Court      Petition of guardian for leave to sell (adult)                         $50.00      $70.00
15-9-60(g)(2)(B)   Probate Court      Petition to compromise doubtful claim (adult)                          $50.00      $70.00
15-9-60(g)(2)(C)   Probate Court      Petition for leave to encroach on corpus (adult)                       $25.00      $30.00
15-9-60(g)(2)(E)   Probate Court      Inventory or annual, intermediate, or final return (adult)             $25.00      $30.00
15-9-60(g)(2)(F)   Probate Court      Petition or motion for attorneys' fees (adult)                         $50.00      $70.00
15-9-60(g)(2)(G)   Probate Court      Petition to terminate/modify guardianship of incapacitated adult       $50.00      $70.00
15-9-60(g)(2)(H)   Probate Court      Application of guardian for letters of dismission (adult)              $60.00      $75.00
15-9-60(g)(2)(I)   Probate Court      Other unspecified guardianship matter (adult)                          $50.00      $70.00
                                      All services rendered, in matters involving sterilization,
15-9-60(h)(1)      Probate Court                                                                             $75.00      $130.00
                                      involuntary treatment, habilitation, or temporary placement
                                                                                                           Previous Fee         New Fee
    Code Section     Office/Officer                              Purpose of Fee
                                                                                                                Amount            Amount

15-9-60(i)(1)      Probate Court      Hearings in contested matters (per 1/2 day)                              $25.00            $30.00
15-9-60(k)(4)      Probate Court      Petition to change birth certificate                                     $60.00            $75.00

15-9-60(k)(5)      Probate Court      Unspecified services through entry of final order                        $50.00            $70.00
15-9-60(k)(6)      Probate Court      Issuance of order not otherwise specified                                $25.00            $30.00
15-9-60(k)(7)      Probate Court      Motions, amendments, or other pleadings                                  $10.00            $15.00

                                      Processing appeals to superior court (does not include recording
15-9-60(k)(8)      Probate Court                                                                               $25.00            $30.00

15-9-60(k)(11)     Probate Court      Permit to discharge fireworks                                            $25.00            $30.00

15-9-60(k)(12)     Probate Court      Firearms license                                                         $15.00            $20.00
15-9-60(k)(13)     Probate Court      Replacement firearms license                                             $5.00             $6.00

                                      Marriage license, if applicants have not completed premarital
15-9-60(k)(14.1)   Probate Court                                                                               $35.00            $40.00

15-9-60(k)(15)     Probate Court      Safekeeping of a will                                                    $10.00            $15.00
15-9-60(k)(17)     Probate Court      Peddler's license                                                        $10.00            $15.00

15-9-60(k)(21)     Probate Court      Recording of marks and brands                                            $10.00            $15.00
15-9-60(k)(22)     Probate Court      Exemplification                                                          $10.00            $15.00
15-9-60(k)(23)     Probate Court      Certification under seal of copies (also add copy costs)                 $5.00             $10.00

                                      Certified copies of letters of personal representative, temporary
15-9-60(k)(24)     Probate Court                                                                               $5.00             $10.00
                                             administrator, or guardian

15-9-60(k)(25)     Probate Court      Issuing a subpoena, each                                                 $5.00             $10.00

                                      Oath or bond of any official/employee within county, including
15-9-60(k)(26)     Probate Court                                                                               $5.00             $10.00
                                           municipal employees

15-9-60(k)(28)     Probate Court      Examination of records or files                                          $5.00             $10.00
15-9-60(k)(30)     Probate Court      Copies, per page                                                         $0.25             $1.00

                                                                                                                              Not to exceed
15-10-80(a)        Magistrate Court   Civil Action Filing Fee                                             Not to exceed $20
                                                                                                              Previous Fee          New Fee
    Code Section            Office/Officer                              Purpose of Fee
                                                                                                                   Amount             Amount

15-10-80(c )             Magistrate Court    Writ of fieri facias                                                 $2.00              $4.00

15-10-81                 Magistrate Court    Conviction - Violation of Ordinance                             Not to exceed $30   Not exceed $70

15-10-82                 Magistrate Court    Hearing on search/arrest warrant                                Not to exceed $10   Not exceed $20

15-16-21(b)(1)           Sheriff             Serving copy of process and returning original                       $25.00             $50.00

15-16-21(b)(2)           Sheriff             Action from another county                                           $25.00             $50.00

15-16-21(b)(3), (c)(7)   Sheriff             Summoning each witness                                               $6.00              $10.00

15-16-21(b)(4)           Sheriff             Levy or Writ of Fieri Facias                                         $25.00             $50.00

15-16-21(b)(5)           Sheriff             Search and return of nulla bona                                      $13.00             $20.00

15-16-21(b)(6)           Sheriff             Summons of garnishment or rule against garnishee                     $25.00             $50.00

15-16-21(b)(8)           Sheriff             Titles to land                                                       $25.00             $50.00
15-16-21(b)(8)           Sheriff             Titles to land if presented by purchaser                             $13.00             $20.00
                                             Executing bill of sale to personal property, when demanded by
15-16-21(b)(9)           Sheriff                                                                                  $13.00             $20.00

15-16-21(b)(14)          Sheriff             Settling each execution in his hands, settled w/o sale               $13.00             $20.00

15-16-21(b)(15)          Sheriff             Levying an attachment                                                $25.00             $50.00

15-16-21(b)(20)          Sheriff             Collecting tax fi. fas., $100 or less                                $5.00              $10.00

15-16-21(b)(21)          Sheriff             Collecting tax fi. fas., over $100 each                              $10.00             $20.00

15-16-21(c)(8)           Sheriff             Taking bonds in criminal cases                                       $13.00             $20.00

15-21A-6.1               Superior Court      Judicial Operations Fund Fee (new)                                      -           $125.00 (State)

15-21A-6.2               State Court         Judicial Operations Fund Fee (new)                                      -           $75.00 (State)
15-21A-6.2               State Court         Judicial Operations Fund Fee (new)                                      -           $50.00 (Local)
 Georgia Department of Revenue

                 Penalties & Interest

Interest - 1% per month from due date until date paid
        - any period less than a month is considered one
        - minimum interest is $1.00
        - interest collected from taxpayers distributed to
          levying authorities ratably in manner taxes are
          required to be paid
     Georgia Department of Revenue

             Late Payment Penalties
Penalties are part of the tax and to be collected as
       -Generally 10% of delinquent tax
       -Per 48-5-242 the county governing
        authority may delegate authority to waive
        delinquent penalties to Tax Commissioner
           Georgia Department of Revenue

Late Payment Penalties (cont.)

• Bad Check = 1% of amount on check or
       money order
• Tax Commissioner needs to have approval of county
  governing authority to receive checks to avoid personal
• Follow procedures in 48-5-146
Georgia Department of Revenue

Late Return of Property

            • Day after Return Due =
              10% of tax due or $1
            • Return due date is April
              1st (March 1St in some
           Georgia Department of Revenue

              Breach of Covenants
Preferential - Taxes saved that year x factor below:
The penalty shall be computed for the year the breach
  occurs by multiplying the taxes saved times:
       5 - If breach occurs in First or Second Year
       4 - If breach occurs Third or Fourth Year
       3 - If breach occurs in Fifth or Sixth Year
       2 - If breach occurs in Seventh, Eighth, Ninth, or
           Tenth Year
Such penalties shall be prorated and distributed to each tax
               Georgia Department of Revenue

Conservation and Residential Transitional - Taxes saved each year x 2
The penalty shall be computed on the entire tract by multiplying the taxes saved
each year by 2 for each year completed or partially completed.

Conservation covenant in renewal breached after sixth year – Taxes saved

Conservation covenant breached owner has reached age 65 or entered into
covenant after 67 and owned/inherited 15 years. -Taxes saved in year of

Conservation covenant breached because of medically demonstrable
  illness or disability. –Taxes saved

Conservation covenant breached because of foreclosure-Taxes saved

Such penalties shall be prorated and distributed to each tax jurisdiction.
         Georgia Department of Revenue

   Criminal Penalties- Mobile Homes
• Failure to Purchase and Display a Decal =
  Minimum $25, Maximum $200

• Failure to Display a Decal = $25

• Move or Transport without a Decal =
             Georgia Department of Revenue

                   Criminal Penalties
•   Obstructing Levying Officers = Misdemeanor

•   Violation of Confidentiality = Civil Penalty (maximum $1,000)

•   Failure to Furnish Records not Confidential = Misdemeanor

•   Failure to Keep Execution Docket = Commission Forfeiture plus

•   Failure to Settle Accounts = Principal Amount plus 20% Interest
            Georgia Department of Revenue

           Levy/Execution Fees
• Levy Administration Fee = Lesser of 5% of Tax or $250
  (minimum $50)

• Fee for Issuing Tax Executions = $ .50

• Issue Day of Execution = 1% per Month

• Transferred Executions - Annual Interest = No More than 12%

• Transferred Executions - Date of Transfer = 1% per Month
         Georgia Department of Revenue

                Court Cases
• DRST Holdings v AGIO Corp         1/8/08
• Powers v CDSaxton                 4/28/09
• Huff v. The Harpagon Company, LLC 3/22/10
         Georgia Department of Revenue

              DRST Holdings
•   May 2004 Tax Sale—purchased by AGIO
•   Excess funds on sale
•   December 2004 Tax Sale of Same Property
•   Competing Tax Leins??
Georgia Department of Revenue

            • Federal Deposit
            • Insures deposits up to
            • Independent Agency
              of the Federal Govt

           Georgia Department of Revenue

                  Failed Banks
•   List updated daily and weekly
•   Get on e-mail list
•   FDIC Receiver appointed
•   Bank Takeover
    – Notice sent to last “recorded”
    – Assets vs Liabilities
        Georgia Department of Revenue

          Collection Procedures
• Notify Receiver at FDIC—ASAP
• Payment forthcoming
  – May be able to save on advertising fees
• Redemption Fee ???

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