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Archive for the ‘IRS Tax Penalties’ Category

July 7 Biz Minute

Question: Will A Mortgage Company Refinance Me For Tax Lien?

I was hospitalized 4 years ago and had to have a major surgery with a much longer recovery than I ever anticipated. I live alone, I dropped many of my responsibilities, it all fell by the wayside and actually it is only the last year I’m beginning to catch up. I didn’t file that year and I received an IRS letter recently with calculated penalties and interest of a little over $30k. On top of that I have outstanding uncollected hospital bills of about $30k. I have a home I inherited free and clear that is valued around 120k. My question is: Can I find a mortgage company that will deal with me though I have terrible credit and never had a mortgage? What kind of loan amount would be available? And what would likely be the interest range/terms for someone like me? Thing is, I don’t want to lose my house right when I’m just beginning to pull my life back together. thanks in advance for your thoughts.

Answer: The tax lien is your worst enemy right now. Now that you own this home they could seize it and auction it to pay your back taxes. You need to contact the IRS and setup a plan to repay this debt and stick to it before they take your home. They can and do seize property (just ask willie nelson) and it is only a matter of time before they find out about this property. I doubt any lenders will touch this until the lien is gone. If they were to loan you money they would be at risk of loosing their collateral to the IRS. If your home goes to auction your chances of getting the homes value would be greatly reduced, especially in this market.

You can reset Social Security

Q: I started collecting Social Security benefits when I turned 62. I wasn’t working at the time and needed the income. I am now 64 and working again. I don’t need the Social Security income right now and wish I had never signed up. Is there anything I can do? A: Yes. But don’t wait.

April Showers and Penalties and Interest Will Apply Video

Debate, old school ways and Fashion Week

Debate, old school ways and Fashion Week

IRS Interest

Question: When paying tax due on 1040X, do I include interest and penalties?

I just want to pay the money I owe to the feds. Since I am amending my return a year later, I know there’s going to be some additional costs. The IRS does say on its site what the interest/penalties are, but I am not sure whether to include that in my payment:

To summarize: Do I pay just what the original amount was and wait for them to bill me the rest, or calculate everything and then pay?

Answer: The IRS will calculate and bill you.

IRS Penalties and Interest