Escrow & Title

Vermont's 'notice of lien' for federal tax liabilities affects title because:

AFederal tax liens take lower priority than state claims
BA filed federal tax lien attaches to all real and personal property of the taxpayer and must be discharged before clear title can pass✓ Correct
CFederal liens expire after 1 year
DOnly the IRS, not the buyer, can remove a federal tax lien

Explanation

A filed federal tax lien (IRS Notice of Federal Tax Lien) attaches to all property of the taxpayer. It must be satisfied or subordinated before clean title can pass in a real estate transaction.

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