Carl Cashflow consults you regarding a tax lien of $25,000 for delinquent employment taxes of his corporation. Carl tells you that his sole asset is his residence, and he gives you the following information:

Fair market value .................................... $125,000

Mortgage .......................................... $115,000

Equity ............................................$10,000

Carl is paying $800 monthly on the mortgage, and he finds that this is more than he can afford. He has an offer to purchase his home for $125,000. He would like to buy a condominium for $75,000 after he sells his home, but he needs $7,500 for a down payment. He figures buying the condominium will bring his monthly housing payment to $550.

1. Can anything be done to prevent the IRS from levying on the proceeds of the sale of the house?

2. What can you suggest to Carl to get the IRS to proceed with this arrangement?