OfflineI joined Dean's family about a year ago. I read both books and became very excited about buying homes as an investment. I began with the processes of buying my first home and then ran into a big wall that blocked everything.
I have an IRS tax levy from back in 1999. It was the deciding factor that stopped any lender from financing the home. I have been told that there is a 10 year statute of limitations on this so I have been patiently waiting for January 01, 2010 when this is supposed to take place. Does anyone know if this is true? Will the IRS really just go away even though I have not paid all of the taxes and penalties?
And does anyone know of any lender(s) that will still finance my purchases with this levy still in effect? Or should I just wait this out for now?
The problem with not having a goal is
that you spend all of your time running
up and down the field but you never score.
-Bill Copeland
Generally - the IRS would automatically release the lien after the statute of limitation on collection will run out - the tax lien becomes unenforceable after 10 years.
Normally IRS issues a Release of the Notice of Federal Tax Lien within 30 days after the tax lien becomes unenforceable. Please be aware that the unpaid tax lien may stay on your credit report permanently.
26 U.S.C. § 6325. Release of lien or discharge of property:
(a) Release of lien Subject to such regulations as the Secretary may prescribe, the Secretary shall issue a certificate of release of any lien imposed with respect to any internal revenue tax not later than 30 days after the day on which - (1) Liability satisfied or unenforceable The Secretary finds that the liability for the amount assessed, together with all interest in respect thereof, has been fully satisfied or has become legally unenforceable;
If IRS doesn't release a Notice of Federal Tax Lien when it should be released, and that resulted some damages - you may sue the IRS seeking compensation.
26 U.S.C. § 7432. Civil damages for failure to release lien says:
(a) In general If any officer or employee of the Internal Revenue Service knowingly, or by reason of negligence, fails to release a lien under section 6325 on property of the taxpayer, such taxpayer may bring a civil action for damages against the United States in a district court of the United States.
It is advisable to keep a copy of the Release of Federal Tax Lien for your own records.
Thank you for the facts, ingalls71.
I will then just wait until I hear from the IRS. I will then file a copy of the 'certificate of release of lien' with all three major credit agencies.
The problem with not having a goal is
that you spend all of your time running
up and down the field but you never score.
-Bill Copeland
Is there a way to pay off the initial amount and have the penalties removed? Sorry to sound naive (knowing nothing of the subject), but just curious. If this will stay on a credit report, is there any way to work it out to then move on? Does the IRS take payments? hmmm. Interesting subject. Good luck to you!
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
O.I.C. stands for Offer In Compromise. This is where the you make agreed upon payments to the IRS (usually 2 years) and complete a strict IRS financial form. Then you can submit an OIC. They will determine how much $ they will accept if you meet their financial criteria. If you pay the offer in compromise it will be considered paid off but not likely to be removed from your credit report.
Hi Rina,
I just wanted a appologize for not having answered you entry until now. It was on that day that I was driving to work and was involved in a very bad auto accident. I was nearly killed.
See> http://www.deangraziosi.com/real-estate-forums/investing-journals/40303
That October was indeed a very bad month for both myself and my family. But I want you to know that I appreciate your thoughtful information.
On December 31, 2009 at midnight the 'statutes of limitation' ran out for the IRS.
I am beginning a new future as you will see when you read my first journal entry listed above.
It is good to be back and I look forward to a bright future now that it is 'twenty-ten'.
Theo T.
The problem with not having a goal is
that you spend all of your time running
up and down the field but you never score.
-Bill Copeland
Hello Dwight,
I just wanted a appologize for not having answered you entry until now. It was on the next morning that I was driving to work and was involved in a very bad auto accident. I was nearly killed and suffered many serious injuries.
See> http://www.deangraziosi.com/real-estate-forums/investing-journals/40303
That October was indeed a very bad month for both myself and my family. But I want you to know that I appreciate your thoughtful information.
On December 31 - 2009, at midnight, the 'statutes of limitation' ran out for the IRS. I am awaiting the notice that you spoke of in your entry.
I am beginning a new future as you will see when you read my first journal entry listed above.
It is good to be back and I look forward to a bright future filled with much success now that it is 'twenty-ten'.
Theo T.
The problem with not having a goal is
that you spend all of your time running
up and down the field but you never score.
-Bill Copeland