Hello articulateink-ga,
I?m sorry to hear about your tax problems. I?ve collected the relevant
links to help you develop a plan of action for selling your car before
you move abroad. I suggest that you review these materials and take
them to your lawyer and discuss with him how to proceed.
Since both the IRS and the State of California have liens against all
your property, you will have to get their permission to sell it. Which
takes precedent is determined by which came into existence first. I am
assuming that it was the IRS lien. I?ve provided a link for you for
the 4 page IRS publication on Applying for a Discharge of a Federal
Tax Lien. It is a complex document that you need to review how you
meet its various requirements and options.
When you sell the car you will have to file the appropriate paperwork
with the California DMV. I?ve included the appropriate links for
instructions on how to do this. You don?t have to do anything about
the Washington State registration. When the new owner received the
California title to the car they will have to register it.
This is a complex topic and resolution is urgent since you?re leaving
the US. I hope that your attorney will be more ready to respond to
your questions when you have the relevant rules and regulations in
hand.
Wishing you well.
~ czh ~
http://www.irs.gov/businesses/small/article/0,,id=108339,00.html
Applying for a Discharge of a Federal Tax Lien
If you are giving up ownership of property, such as when you sell your
home, you may apply for a Certificate of Discharge. Each application
for a discharge of a tax lien releases the effects of the lien against
one piece of property. Note that when certain conditions exist, a
third party may also request a Certificate of Discharge. If you're
selling your primary residence, you may apply for a taxpayer
relocation expense allowance. Certain conditions and limitations
apply. Refer to Publication 783 (PDF), Instructions on How to Apply
for a Certificate of Discharge of Property from the Federal Tax Lien.
-----------------------
http://www.irs.gov/pub/irs-pdf/p783.pdf
Certificate of Discharge of Property from the Federal Tax Lien.
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http://www.ftb.ca.gov/aboutFTB/manuals/arm/cpm/4330.html
California Franchise Tax Board
4330 PRIORITY OF STATE TAX LIEN
4330.02 Competing With Federal Tax and Other State Agency Liens
1. It is the department's position that between competing state and
federal tax liens, the lien that first comes into existence has
priority over the lien that later comes into existence (statutory lien
date). The priority is not affected by the recording or filing of a
Notice of State Tax Lien or notice of federal tax lien.
***** See detailed instructions about how competing liens are handled.
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http://www.dmv.ca.gov/vr/topbuysell.htm
Department of Motor Vehicles
Vehicle Registration and Title Information
Buying or Selling a Vehicle (Changing Vehicle Ownership)
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http://www.dmv.ca.gov/pubs/brochures/fast_facts/ffvr32.htm
How to Change Vehicle Ownership
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http://www.dol.wa.gov/vs/sale.htm#what
Department of Licensing -- Reports of Sale
Who must file a report of sale?
Washington law (RCW 46.12.101) requires submission of a report of sale
by any person or business that transfers their interest in a
Washington titled vehicle to anyone else. For the purposes of this
rule, transferring interest includes but is not limited to selling,
gifting, trading, privately or into a dealer, or disposing of your
vehicle.
***** Since your car is titled in California you don?t have to notify
Washington about the transfer of ownership. The new owner will have to
register the vehicle when after you?ve sold it and transferred the
title.
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