Owing the IRS and Purchasing a Home

[goodlife]

I hadnt filed my 2005 taxes on time. I just recently filled in 2007 after filing my 2006.

I now owe 5000 to the IRS but I included the Installment Agrrement form offering to pay them $150 per month to pay it off.

Ive been recently called by city subsidized homes to purchase but I am afraid I wont be approved for a mortgage by a bank because of what I owe.

Will a tax lien be put against me even though Im on an payment plan? Will a bank approve me knowing I owe taxes?

[Mr. Knowitall]

As long as you make your required payments, I doubt that they will take additional action.

[llworking]

It also takes some time for any tax lein to show up on your credit report. Therefore even if the IRS wanted to take further action, it probably wouldn't happen for at least six months or so. There is a proceedure that they are required to follow.

[goodlife]

Thank you so much. This is the best advice site Ive ever been on

[seniorjudge]

Q: Will a tax lien be put against me even though Im on an payment plan?

A: It's possible but unlikely.


Q: Will a bank approve me knowing I owe taxes?

A: Ask the bank.


Also, go to the courthouse and look for your name in the land deed records to see if the feds have filed a tax lien against you. They are supposed to let you know before they do so, but sometimes they "forget"!

[M'sta Mikey]

I too owed the IRS and entered into a payment arrangement with them to repay the debt.

Shortly after making my 6th payment, I was able to purchase a home with no issues. Paid the debt off last month and they (IRS) never placed a lein on the property.