You are getting incorrect answers. If it is a federal IRS lien it can still close and the seller can try to get it released evn after closing. The federal IRS allows it to close because they know they can get you no matter where you are in the nation. They allow it to close without any contribution however it remains with that property so the buyer needs to be made aware. I have closed plenty of them however the short sale seller should do the proper thing and file to have it removed. The buyer takes the risk by closing and possibly assuming that lien. If it is a State tax lien then it has to be settled in order to close unless the State allows the removal of the lien which is really unheard of.