Please help,tax lien don't know what to do..

[Anonymous]

Hello everyone,I need some advise and not getting good info online.I have a mess with the IRS .Got auditid and ruined my life.

Now i owe back taxes for 2004,05,06 and 07.Had a lien on my credit,but that has gone away.The IRS put me in non collectible status

and i've been that way for 9 years.My issue now is the IRS put a lien on my house.I need to get a loan,second on the house.

I owe IRS 50k approx.Every loan person and even Hard money guys want the IRS debt paid from the loan.

The 10 year statue of collections will be up in a year and a half.

What should i do?IRS has not tried to collect or even bother me in years.

Should i go to the IRS office and try to negotiate?What i've seen online i can't qualify for offer in compromise.

I am hoping someone has experienced simiular or some good advise,,,,Thank you so much for reading...

[FlaDude]

I don't know much about the IRS lien specifically, but generally a lien just makes it hard to sell your property, if you don't plan to sell before the SOL is over, it might not be an issue. The question is whether they can foreclose on the house, that might depend on what state you are in. If so, then you do have a potential problem. Hopefully others with more direct experience will weigh in here, but I would strongly suggest talking to an attorney who specializes in IRS issues. 

Edit to add that this page suggests that IRS foreclosures are not common. Do you have much equity in your home (current market value less  mortgages)?

[Anonymous]

Is the IRS lien on your house new or was it attached 9 years ago when the IRS problems came about? Also, is there a mortgage lien on your house currently or is the mortgage paid off?

While the SOL may be up at the 10 year mark and the IRS has made no attempt to collect thus far, don’t assume they won’t in the time they have remaining.

[Anonymous]

The lien i just found out when i tried to get a second.It was filed in 2011.

I have a fist mortgage for 435k approx.House apprasied at 1,400,000.

I am trying to get a loan for 50k-100k to put in my buisness.

But no one will loan with tax lien on the house.

I would like to g to IRS office and negoiate a small pay off,but i am scared to open a can of worms"so to speak"

If you have equity they wouldn't except a Fresh start or offer in compromise.

All the tax lawyers want a lot of money.

My credit is good 669 Experian today,but usage is up on cards so been declined for personal loans

[Anonymous]

I doubt you’ll find any lender willing to do bite with the lien showing.

I’d definitely tread lightly. I don’t have a lot of experience on what the IRS is likely to do, but I know they can foreclose on the property. Your mortgage lien is the primary lien, but the IRS can still forclose and then pay off the mortgage company.

[Anonymous]

You have close to $1mm equity in your house. Just pay the IRS their money.

If adding that $50k to the amount you want to borrow makes the payment unreasonable, it may be time to consider selling.

[SouthJamaica]

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@Anonymous wrote:

Hello everyone,I need some advise and not getting good info online.I have a mess with the IRS .Got auditid and ruined my life.

Now i owe back taxes for 2004,05,06 and 07.Had a lien on my credit,but that has gone away.The IRS put me in non collectible status

and i've been that way for 9 years.My issue now is the IRS put a lien on my house.I need to get a loan,second on the house.

I owe IRS 50k approx.Every loan person and even Hard money guys want the IRS debt paid from the loan.

The 10 year statue of collections will be up in a year and a half.

What should i do?IRS has not tried to collect or even bother me in years.

Should i go to the IRS office and try to negotiate?What i've seen online i can't qualify for offer in compromise.

I am hoping someone has experienced simiular or some good advise,,,,Thank you so much for reading...

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You should hire a professional to negotiate a deal with the IRS. And then you should pay off the agreed upon amount when you borrow against the house.

[Revelate]

A few things: first, absolutely figure out the exact SOL date; 10 year SOL is counted from the assessment date which is usually +3 years from the mandated filing date.  53c date I believe it was on the transcript but I haven't dealt with the IRS in about five years.

Dealing with the IRS, the first step is always get the tax transcripts from the IRS for the years in question: this is what they're going off of, and you want that same picture.  

Ultimately they know about the house as an asset of yours, ergo you aren't going to get an OIC accepted because they know you have assets they can acquire legally if required.

I'm of two minds on hiring a professional as the IRS is black and white to deal with frankly, but I'd leverage the equity in my house to pay them off somehow... and seriously 50k vs. 1.4m in assets in a house, figure it out with a payment plan if you have to: that screws up your exclusion but believe me when I say your case agent probably isn't happy that they only just recently found out about the house to file the lien on.

I did have one lien pass SOL and they certainly tried to take it out on me later but fortunately I had everything in my favor at that point.  Moral of the story, know exactly what rights you have, and if you do need a professional to figure that out, get one.

[CreditCuriosity]

Pretty simple pay the IRS that is one agency you do not mess with.  I was audited for Tax year 2010, but due to that i was also audited for 2011, 12, 13 and 14..  Long story short a 4k oversight on my part ended up costing me about 12k total which includes penalty and interest i didn't find out about the audit until all the sudden got a letter from my HR dept saying my wages were going to be garnished as had no idea i owed the IRS anything as they had a bad address.  

As others stated the IRS is black and white and have no sense of humor talking to them is a nightmare I rather get kicked in the family jewels 1000x in a row rather than deal with them on the phone.  Long story short about 3.5 years ago entered an installment agreement with them for 7 years i believe at trivial 140ish a month payment and will be paid off this year due to a 5.2k tax return that they took this year and applied to the balance of the agreement only owe 800ish now and will be paid off in 6 months. Thankfully they lifted the garnishment of my wages when i spoke with them and found out the misunderstand and set up the agreement. 

The IRS is way to powerful and yes you could lose your house or your wages can be garnished among other things.  Just pay off the 50k if your house is worth 1.4 mill as that is small change in comparison what you have to lose and you typically can't beat the IRS and they are simpy the most powerful gov't entity and have zero tolerance and are very black/white.

[Anonymous]

Getting the lien off the credit report childs play. Getting the lien withdrawn  not so easy. Google IRS Fresh Start program. Requires payment plan and valid reason.  Not so easy. A title search will show up the active lien.    Either hire some or go through the Taxpyaer Advocate Office to help you. With over $1MM in equity $50K  is nothing. If the IRS realizes you you have that much equity they may solve your problem for you. 

You may also be able to get penalties abated for reasonable cause that will drop the amunt by 1/3 to 1/2. But again hire a professional.  Many years ago I was the Tax  Division partner in a Regional Cpa Firm.  Long since retired.  A withdrawal is not the same as release its better