FEDERAL TAX LIENS, AFTER-ACQUIRED PROPERTY, PURCHASE MONEY MORTGAGE.

All property of a taxpayer, including after-acquired property will become subject to a lien for nonpayment of taxes to due to the IRS. Although the lien shall arise on the date of tax assessment, it will not be valid unless a notice of the lien is recorded at the registry of deeds. The lien shall terminate after the expiration of 10 years from the tax assessment date unless the IRS refiles the lien within one-year period ending ten years and 30 days after the date of the original assessment. If the notice of lien is refiled, the lien continues for another ten years.

Although a federal tax lien attaches to all real estate of the taxpayer, including after-acquired property, Revenue Ruling 68-57, Tech. Info. Rel. 957, January 11, 1968 provides that the IRS lien will become a subordinate matter to the purchase money mortgage, which allowed the taxpayer to buy the property, even if the mortgage is recorded after the recording of the notice of lien. This provision does not apply to refinances.

The tax lien may also be terminated by recording a Certificate of Release, Certificate of Discharge or Certificate of Nonattachement.

For more discussion, see Eno and Hovey, Massachusetts Practice – Real Estate Law with Forms, West Publishing Co (Third Edition, 1995), §11.16, and Massachusetts Conveyancers Association, Inc. Title Standard No. 54.