I owe the IRS and have not filed my federal taxes in years, I have no IRS lien on my credit report, I f I buy a house will the IRS find out?
Should I stay under the radar with the IRS and try to buy a house and deal with the after the fact?
(0) | asked by: Gil Gonzalez | share | 25 months ago | Report
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Lenders are going to require that you have filed tax returns. If you haven't filed in years and you were supposed to, that would be a problem more than likely. If you have IRS liens, it will more than likely show up on the title search even if not on the credit report. Lenders care about IRS liens because it may supercede the lender's first mortgage position You would also need to ask a CPA about your request and think about asking questions like this before you do it because you don't want to purposely avoid the IRS/government. Hopefully you have asked an accounting professional by now.
Hi Gil. Please contact an accountant or a financial planner so that you are well placed to choose a prudent course of action. Also get in touch with a real estate lawyer so that they can shed more light on your situation. Good luck. Please note the content is not intended to be, legal or investment advice. You should consult a licensed attorney or realtor for advice regarding your individual situation.
OOPS, Looks like my earlier comment may have been censored. I cant give legal or tax advice. Contact a creative financing expert, like me. You dont have to pay your taxes in order to own property. Please forgive some of my colleagues for giving wrongful advice, without knowing all the facts around your case.
Now, let me say this ...this is a tax issue and you should not rely on anything I say. You should consult a tax attorney. Dont make the mistake I did once and got one who represented the IRS, not ME. I did find a good one and got squared away. As you probably know, the IRS is a ruthless bunch of blood sucking criminals. If you file, then they have a claim against you. Then they can file a lien on you. If you want to buy a house, I would work with someone who understands creative financing. It is all about equity and protecting the holder of your note with equity. I totally respect your courage. As long as you understand their rules and use them to your advantage, you can still own property. (until they finally take that right away) Sorry for the rant. You touched a nerve with me.
Perhaps if you have a 401k plan, I would use some of that money to pay the taxes so that when you purchase the home, you will have a clear record. Please note that they year when you file your taxes, you will reap the benefit of home ownership. Therefore, I would recommend paying the taxes before purchasing the home, if possible.
It's probably best to file taxes and see what you owe before tying up your money on a house that you may need to pay your past taxes. Also, if you were to some how get a loan on a house and the IRS were to put a lien on your paycheck or tax returns, you may end up losing your home if you can't afford the mortgage in that situation.
You need your IRS Tax Returns to get a loan, unless you have all cash I would say yes, they will find out.
Firstly you need to talk to a mortgage broker or you banker about this, be upfront and honest with them to better your change of getting financing. For mortgage lenders, your debt is not a deal-breaker – up to a certain point. Even the nasty stuff like judgments and collections won’t necessarily keep you from getting a mortgage. But life can get a bit more complicated when it’s Uncle Sam you owe. Failing to pay your federal income taxes can lead to the Internal Revenue Service placing a lien on your property or your assets. These legal tools protect the government’s ability to get its money. They also set off alarm bells for lenders. The good news is the presence of a federal tax lien doesn’t automatically ruin your home-buying chances. It’s almost always more a matter of what you’re doing to make the lien go away.
Your only other option would be to do private financing, but that would usually require 50% down
By owing taxes and not filing for years is not a good thing. You will not qualify for most loans already unless you are willing to pay a high interest rate and have a large down payment due to not filing your income tax. You may have to do a hard money loan if you can even find one that is willing to deal with your situation. Also, another issue is if you pay all cash, I don't think an escrow company will or can accept it. Converting your cash to a cashier's check may also trigger a report that banks are obligated to do for transactions over $10,000. I would advise you resolve your issue with the IRS and then attempt to buy a home.
They certainly might find out, but if you're planning on doing a loan, you won't be able to get financing without your tax returns.
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