IRS Total Amount Owed/USDA Loan

[JayTee1]

Hi everyone,

I think I'm okay, but looking for reassurance or someone who has experience.  My USDA loan is currently being underwritten with my lender, and they are asking for documentation of the total balance owed to the IRS which I plan to send in shortly, since I should have a statement from the IRS in the mail in the next couple days.  In December, I owed around $26,600, and I've been on an installment agreement for about two years.  I have not owed any additional money since a year before I entered the installment agreement (so that amount is not increasing).  I haven't missed any payments.  The lender knows the monthly amount ($516) and has factored that into my DTI and I'm well within DTI requirements.

I disclosed this amount (approximately anyway) when I first started looking into the loan.  Now that they're asking for this, I'm nervous.  Will this outstanding amount possibly prevent my loan from being approved either by the lender or USDA?

Thanks.

[ShanetheMortgageMan]

The total tax liability owed will show up on IRS 4506t results that the lender can obtain, even for tax returns from years ago.  Tomorrow ask your loan officer if they can obtain that information through your tax transcripts directly from the IRS.  You might even be able to obtain them yourself instantly at https://www.irs.gov/individuals/get-transcript.  They are just looking to confirm that the payment plan covers all income taxes owed.

[JayTee1]

Thanks - the final sentence there is what I was looking for (payment plan covers all taxes -- it does).

Appreciate the response.