topic Re: IRS taxes DUE and conerns in General Credit Topics

IRS taxes DUE and conerns

shorttough — Thu, 29 Nov 2012 18:30:53 GMT

Hi,

I am planning to file on February 2013 and based off my calculations i'd owe 2200 dollars. and i am wanting to pay partial amount like 200 dollars.

I'd also be closing on a home in April 2013. and i'm saving every penny to pay for upfront PMI and partial downpayment until then.

My concern is,

if i make as much small payments as possible until April and arrange installements with IRS, would the underwriter know that i owe IRS. will this show up in my credit report or will there be inquiries.

Re: IRS taxes DUE and conerns

webhopper — Thu, 29 Nov 2012 18:41:58 GMT

Technically, you do not "owe" taxes until January 1. Also, taxes are not "due" til around April 15th. The mortgage underwriter will not know that you owe this money until they pull your tax transcripts. If you wait til file until AFTER the mortgage goes through, they likely will never know, as tax installments are not factored into the equation unless you're signed up for a written installment plan with the IRS. So far, this hasn't happened yet, so the payment won't be included in your DTI. You may want to look at adjusting your withholdings by completing a new w4 at work. Also, I wouldn't start sending checks to the IRS if I were you, I would just save that money into a savings account until the money is actually due.... on April 15th. That way, you're not giving out an interest free loan. adjusting your w-4 would likely be a much better way to pay more without raising eyebrows.

Re: IRS taxes DUE and conerns

shorttough — Thu, 29 Nov 2012 19:03:29 GMT

Well, i'd have to show my 2012 tax transcripts because i'd have to show that i've not continued on my sole propritorship which was a loss a year earlier.

anyways, so if i close in April 2013, so they'd need the transcripts in March 2013. so pulling transcripts show the amount still owed to IRS?? i didn't know that.

how about this?

i don't sign up for installments, but make payments on my own.

February 2013 - 200.00

March 2013 - 200.00

April 2013 - 1800.00

this way they don't have a installment plan to factor into my DTI.

now if i can't make payment in April 2013, then only i sign up for installment. by then the bank should close the mortgage. adjusting W4 would take more out of my paycheck so, would decrease my savings.

thanks in advance for your input.

Re: IRS taxes DUE and conerns

scarrollprint — Fri, 30 Nov 2012 20:50:34 GMT

OR you could just wait on buying a house after April...

do the extra witholdings now, (only 1 month left in the year) and then wait 1 month to buy the house which would bring back the savings that you would have missed out in December

Re: IRS taxes DUE and conerns

shorttough — Sat, 01 Dec 2012 00:08:00 GMT

Its a new construction home so I have no power. I spoke to a LO. He said I could pay it in march and keep receipt of the payment from IRS. Prior to closing underwriter might verify everything

Re: IRS taxes DUE and conerns

KevinBlock55 — Sat, 01 Dec 2012 04:20:25 GMT

W-2s and proof extension is filed if you need to go past April 15th. They wont require the taxes be filed

Re: IRS taxes DUE and conerns

compassion101 — Sun, 02 Dec 2012 05:41:27 GMT

If I am understanding the situation correctly, I don't see any issue for you as far as getting your house in April.

You can file your taxes when you are ready (January, February, March) but you don't have to send in the payment till Apr 15 and there shouldn't be a record for this. Come Apr 15 when time to pay you can PIF or request a payment plan with IRS if that is what you need. Keep in mind there may be penalties and interest and often are if you owe over 1k.

Re: IRS taxes DUE and conerns

shorttough — Sun, 02 Dec 2012 05:48:14 GMT

my only concern was whether the underwriter would verify my payment to IRS for the taxes due for 2012, when they pull my transcripts and would there be any indication that taxes are still due, since i would like to pay the whole amount in March, but file my taxes in January, that way they can get a 2012 copy in March or April, that i want them to have. So based on your conclusion it seems like it wont be a problem. thanks