IRS Question

[Booner72]

Hi, All.  My good friend at work owes IRS just over 3K.  She plans to go on a payment plan right away, and contact them before the taxes are due.  She doesn't have the money to pay.

Are they going to put a lien on her credit reports?  She doesn't own a house, so there really isn't anything to "lien" on.

If they are, shouldn't she go try to get an installment loan from a credit union or bank before her credit gets shot from the tax lien?

[MarineVietVet]

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@Booner72 wrote:

Hi, All.  My good friend at work owes IRS just over 3K.  She plans to go on a payment plan right away, and contact them before the taxes are due.  She doesn't have the money to pay.

Are they going to put a lien on her credit reports?  She doesn't own a house, so there really isn't anything to "lien" on.

If they are, shouldn't she go try to get an installment loan from a credit union or bank before her credit gets shot from the tax lien?

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I can only speak for myself. I'm entered into a payment agreement several times with the IRS and I must say it was a painless process. And nothing was ever entered into any of my reports. If she has a chance to do this I advise her to do so.

But tell her also to not ever be late while in this payment arrangement. The IRS has no sense of humor whan someone stiffs them for money.

[llecs]

Ditto. I've had personal tax issues with threats of liens and even a levy on wages, but nothing ever reported. And definitely take MVV's advice and tell her to never be late, but also enter into an agreement that's manageable.

[Booner72]

Ah, okay.  I will tell her to chill out then.  Thanks to both of you for sharing.

[pizzadude]

I've wondered about that as well - I don't know how they can file a lien against you when you own nothing.  

But in any case, my 2 cents is a ditto to the above comments ~ the IRS is decent about working with most people on a payment plan ~ you can more or less pick the payment that works for you, and also you can set it up to auto~draft every month.