The Tax Division has delegated to the United States Attorneys the authority to accept applications to release the United States' right of redemption under 28 U.S.C. § 2410 in matters involving: 1) real property on which is located only one single-family residence, and 2) all other real property having a fair market value that does not exceed $200,000. See Tax Division Directive No. 83, located in 28 C.F.R. Pt. O, Subpt. Y, App., “Redelegation of Authority to Release Rights of Redemption in Certain Cases.” The person seeking such a release must pay consideration that equals the value of the right of redemption or $50, whichever is greater. The limitations as to value or use of the property and the consideration that a person must pay do not apply in those instances where any federal agency requests the release. Form OBD-225 is the prescribed form of application for release of right of redemption in respect of federal tax liens. The instructions to Form OBD-225 set forth detailed information about the procedure that a person who is seeking this release must follow. In all instances not covered by Directive No. 83, the United States Attorney should handle all applications for release of rights of redemption in a manner similar to compromises.

[updated April 2018]