Can a taxpayer sell a home that has an IRS tax lien on it?

Yes, a home can still be sold if an IRS lien is attached to it. However, the IRS must be involved in the sale process. The lien will not be removed until the IRS receives its interest, limited to the lessor of what it is owed and what the taxpayer\’s interest in the asset is.
This ensures that the IRS gets paid from the proceeds while still allowing the transaction to close.