If you have E&O insurance, this should help you out. If you were under the title company's insurance, you should make then aware of the situation you are now facing. I would call the tax department where you received the information, may be the department head can write you a letter explaining what occurred and it was not due to any mistakes on your end. This would suffice them and any court of  law. You cannot get blood out of a turnip, if it's not your fault, then what do they expect to gain.

 

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