Credit Card Center Advertiser Disclosure†
01-21-2014 01:51 PM
I am going into underwriting in the morning and the loan processor insists on me providing an account statement from the IRS showing our balance and all of the payments made on time.
I called the IRS and they informed me they don't have an account sheet like they are wanting.
If any of you have had to show proof of your payment plan with the IRS to underwriting, please tell me what to give them.
I have the original agreement with the IRS and my bank shows the automatic payments every month.
I need something to give them asap.
01-21-2014 05:16 PM
Do you pay online at https://www.eftps.gov/eftps/ or one of the other IRS payment websites? If so, you should be able to get a payment history from the website. Otherwise copies of your bank statements showing the payments (or copies of the cancelled checks after they've been cashed) could be OK to provide instead. I believe the IRS sends monthly statements out if you are on a payment plan (looking back at some other clients documents I see they were sent monthly statements) and on each statement it lists the current balance owed for each tax period.
01-21-2014 05:41 PM
That's what I thought. My payments come out of my checking account every month. I asked if they could use that and they said I needed a printout showing the balance owed and payment history. I spoke with the IRS Friday, and again today, and they said they don't have anything they can give me.
It makes me wish I never disclosed this to them, but I didn't want to be dishonest. If they can't use the bank statements and the letter I have from the IRS as proof, then I think I may change lenders. Especially since they act like they have never come across this. I even asked if it would be easier just to go FHA and was told they would want the same information!
So frustrated and every night has been full of stress.
The reason they want the information is to add it as a supplement to my credit report? I would have thought that they would only want to confirm that I pay on time.
01-21-2014 05:51 PM
It's odd it's being asked to be added as a credit supplement, you are right most lenders are just fine with the balance & payment agreement from the IRS and some sort of printout showing you've been making the payments on time. Hopefully your lender will be OK with what you have. Let us know how it turns out.
01-21-2014 07:19 PM
Yeah, and I really don't want them adding it as a supplement to my credit report. From every credit and mortgage website I have found, not one mentions doing this. I am sure it has happened before, but you just can't find many people with payment plans discussing it online.
One thing is I wish this forum had a special section just for tax liens and etc.
I will lt you know how it turns out.
01-21-2014 09:50 PM - edited 01-21-2014 09:58 PM
Don't quote me on this but you might be able to get most of that information from one of the IRS tax transcript types for the year in question if not quite in the pretty format your lender desires.
IIRC (it's been a year since I looked at mine) in addition to the assessment date and assessed taxes, penalties, and interest, it also showed payments from scavenged Fed/State tax refunds and a bank levy. It might show payments if you're in a DirectDebit agreement that the IRS is so enamored with these days. Beyond that I don't know anything from my own several rounds with the IRS that would demonstrate anything like that unfortunately.
ETA: regarding Tax Liens, doesn't come up that often here and honestly there's much better information out there (nolo.com et al.) and for more complicated issues that can't be DIY'd: don't pass Go, just get a good tax lawyer. This issue seems more like lender stubborness on some estoric nit-picky point.
01-22-2014 03:59 AM
You are correct about the transcripts. I got copies of those and the payments are showing on there.
They are being too picky. I told them I can highlight the payments on there, give them a copy of the IRS payment agreement that shows the beginning balance along with the first payment due dat, and then they can see every payment made from my checking account. We are only talking 6 months of payments so far, so it's all right there for them.
I think the processor is trying too hard to get every detail for the underwriter, and she honestly don't know what they are going to need for this. Not saying anything bad about her, as she's very nice and everything else has been smooth working with her. I am just going to ask her to submit everything we have and let the underwriter tell me what we need. Heck, they might not even need anything else.
Thank you for taking the time to help out with this.
01-22-2014 08:00 AM
If you contact the IRS and ask for an "Annual Installment Agreement Statement" - they should mail one out to you. We did this, for our own records, and received it within a week. The phonenumber on the statement is 800-829-0922
it provides the following info:
Payment detail page showing payment amount, date payment made, tax year applied, tax period applied
Installment Agreement activity page showing tax period, begining balance, total payments rec'd, penalties and interest, ending balance
We owe for two years and both years are included in our payment plan and both show on the statement. It was rather easy to get this statement. Not sure if this matters but we pay them by direct debit monthly from my husbands checking account. There are no liens on either of us, just the payment plan.
01-22-2014 05:44 PM
Well, I finally got them enough paperwork to make them happy and they sent our paperwork to the underwriters.
Now, I have another concern. The loan officer told my realtor that she was afraid it won't get approved because we are on a payment plan with the IRS.
I am worried. We have a 684 fico and we do have a payment plan, but no liens at all. We have had the plan for 6 months so far. This is for a conventional loan, so maybe that's why she's not sure we will get approval. I am wondering if we should have gone FHA instead? Maybe they will offer us that if we don't get the conventional loan?
I am trying to remain positive. Has anyone else with a payment plan been approved?