Client has over $70k in back taxes penalty and interest from 1994 through 2003. I have filed an OIC but am still about $14K apart on what they can borrow on their home and pay within the 2-year period. We considered bankruptcy since so much of the tax debt is dischargeable but I have copies of documents from the IRS indicating they have filed liens of over $60K on the clients home. In discussions between the client and a loan officer they checked for the liens and couldn't find them at the county assessor office. A follow-up phone call also revealed no liens. It would seem the IRS didn’t perfect the liens. Bankruptcy is looking better. Any thoughts from the great minds on this board?
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In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de Tocqueville -
Go ahead
Go ahead with the mortgage application and pull out what you can. Put it on deposit with the IRS -- believe me, it will make your OIC much more attractive. It will also get a real title search on your property, which will shake out that lien. Then you'll know where you stand, and you can pick that money back up and file bankruptcy if you want.
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