Mortgage Loans

[magman]

I'm in the process of buying a home with an FHA loan and I just found out that I owe $2800 for the 2011 tax year.  I just completed my home inspection and my appraisal will be this week and should be sent to underwiting shortly.  Is it possible to file for an extension and pay taxes after I close or will this have to be paid before closing?

[MarineVietVet]

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magman wrote:

I'm in the process of buying a home with an FHA loan and I just found out that I owe $2800 for the 2011 tax year.  I just completed my home inspection and my appraisal will be this week and should be sent to underwiting shortly.  Is it possible to file for an extension and pay taxes after I close or will this have to be paid before closing?

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This is from the IRS website: Please be aware that an extension of time to file your return does not grant you any extension of time to pay your tax liability.

[FICOisa4letterword]

Ouch! I'm sorry this is hitting you at the final hour, but I agree with the other poster...you're going to have to take care of it.

[pizzadude]

The IRS is pretty good about working with you on a payment plan, you can set it up to auto draft from your checking account on a particular day of the month.  

This way you wouldn't have to pay it all now, you could pay most of it after you close.

[K_J]

+1 Just make payment arrangements with them and you should be good.

[cdtotten]

+1 to payment plan - easy to setup as long as you did it on time. Afterwords, they become a little more of a pain.

Extensions do not apply to amounts due; it just gives you more time to complete the actual tax returns. You must make a payment with your extension if you owe anything.