Driving a new car or an almost new car these days requires you to borrow or lease the car. That’s because they cost so darn much.
Well, without the ability to walk into your local auto dealer and cut a deal on a new or almost new car, you’re stuck with that old unreliable clunker, just because you have a tax problem. It doesn’t seem fair, but it’s hard to get an auto loan or lease when you have an IRS Problem.
Home loans are even harder to get. Heck, they are hard to get when you credit’s good if you don’t put a pile of money down on the home. Not having a home to write off causes you to pay even more taxes than your friends or neighbors because you have no tax deductions.
People that do have homes and then get into IRS Problems, risk the chance of losing their home to the IRS. Yes, I mean selling the home and giving the money to the IRS for payment of back taxes or letting the IRS seize it and selling it at auction. You see, having a home before you get into IRS Problems, may be even worse than not having a home at all.
For example: If you own a home and then find yourself owing the IRS $25,000 for some income or payroll taxes, you could be making house payments on your home that effectively is owned by the IRS. Once they file a Federal Tax Lien on your home, you can’t sell it without paying off the IRS. This means that you continue making the monthly payments, continue to take care of the home, and the IRS just sits there and waits. You pay all the bills on your home and they get all the equity. What a Deal!