Owing the IRS

[debc]

we are on our 3rd contract. In the beginning we disclosed to our LO that we had a tax lien, this became a contingincy to final approval, getting it paid. We have now paid the lien, have been released by the IRS, however there are other years that are still being paid under the installment agreement (been in place since 5/2006 through payroll deductions). Now, we have been assigned an FHA number (I only know this cause the appraiser on the first contract was waiting for it), so do you think that means we have gone through CAIVRS and the lien showed up, but in knowing it was being paid my LO went forward? Just curious where the CAIVRS is done in the whole scheme of things.

[RABQUE]

 Thanks For the info Dallas…..I have another question….Is it safe to say that owing the IRS would only cause a problem if you are delinquent. If there were a payment plan in place with the IRS,   this be wouldn’t be considered delinquent right?

[radar27]

I had an outstanding tax debt and was able to get a FHA loan without it being an issue. The balance wasn't listed on my credit report. I would imagine it would have been a different story if it had turned into a lein and was on my credit report.

[RABQUE]

Thanks for the info radar.....DId you disclose the debt to your LO?

[Anonymous]

Rabque, Without being too specific and getting anyone into trouble, not disclosing the debt did not prevent a home loan from being funded in at least one case I know. 

[Anonymous]

Payment agreements with the IRS don't get reported to the CRAs as long as they are paid as agreed, but you could always take the payment agreement the IRS sends you to your LO so that everything is accounted for.

[Anonymous]

You can't get into a second payment plan for the next year.If you owe taxes the following yr.they have to be paid in full only one payment plan at a time

[RABQUE]

I made a payment plan in April to pay 2007 taxes by August 20th…..I received my notice to pay what I owe for 2008 about two weeks ago….Yesterday I called the IRS and the guy was able to combine the amount owed for 2007 and 2008…..As a result, I have to pay all of them in full by August 20th.

[debc]

well it might all depend on the amount, over 25,000 maybe, but i was on a plan that had 5 years on it, then ended up owing 2008 taxes....after a call they added it to my plan.....got my original lein paid off (still owe from the years that were not included on the lein, but are on a payment plan) got the house 4/30.