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Started By
Message
IRS Tax Settlement
Posted on 2/22/17 at 3:21 pm
Posted on 2/22/17 at 3:21 pm
I have a buddy that owes about 17k to the IRS. He pretty much lives paycheck to paycheck and the IRS wont settle. He wants to buy a home and is looking for a way to get this burden off his shoulders. Have any of you guys ever used a company that specializes in settling IRS debt or have any poor man's solutions to getting them to settle for less? He says that he has called the companies who advertise and they want some pretty big fees up front with no guarantee to settle the debt. As for his dealings with the IRS directly, outside of being extremely difficult to contact, the aren't much help of course. Any suggestions would be appreciated.
4
Posted on 2/22/17 at 3:28 pm to pcolatiger28
quote:
lives paycheck to paycheck
quote:
wants to buy a home
quote:I'd advise to hold off on the home-buying plans.
owes about 17k to the IRS
Posted on 2/22/17 at 3:31 pm to ell_13
Maybe I exaggerated, doesn't have tons of free cash laying around. He could afford a mortgage payment but doesn't make enough to save up 17k in any reasonable time. The debt is preventing him from getting a loan. More importantly though, getting the burden off his shoulders and repair credit is a larger priority than buying a home. Thanks for any guidance.
Posted on 2/22/17 at 3:32 pm to pcolatiger28
For 17,000 the IRS will set up a manageable payment plan at 6% interest with no questions asked. It will also clear any liens that may be keeping him from qualifying for a mortgage, although the payment will be counted in his DTI ratios.
Form 9465.
Form 9465.
This post was edited on 2/22/17 at 3:33 pm
Posted on 2/22/17 at 3:57 pm to pcolatiger28
It really depends on what the liability is for. Is this unpaid taxes, and the corresponding interest and penalties? Has he filed all of his returns? Is it a penalty of some kind?
Most of those companies are a scam.
Most of those companies are a scam.
Posted on 2/22/17 at 4:03 pm to pcolatiger28
Home ownership is more than affording a mortgage payment; as a friend, I'd feel compelled to point this out to him. If you are a home owner, share with him your insurance, taxes, and maintenance costs. Too many people think of rent as throwing money away--but rent is at least a fixed & predictable expense. If he's not good at managing money, keeping a cash reserve large enough to handle routine home maintenance expenses may be more than he can handle. Not everyone is cut out for home ownership.
Posted on 2/22/17 at 7:06 pm to pcolatiger28
quote:
but doesn't make enough to save up 17k in any reasonable time.
does he have any money for a down payment for the house?
Posted on 2/22/17 at 7:26 pm to pcolatiger28
quote:
Maybe I exaggerated, doesn't have tons of free cash laying around. He could afford a mortgage payment but doesn't make enough to save up 17k in any reasonable time. The debt is preventing him from getting a loan.
No kidding. This is a hint and a half that he isn't ready to get a mortgage.
It isn't about just being able to afford the payment today. It's about being able to afford the payment if you lose your job, if you get divorced and suddenly have alimony and child support, etc. You have to convince the lender that you're good for the money no matter what happens for however many years the mortgage lasts, no matter what happens along the way.
He isn't ready. Simple as that.
Posted on 2/23/17 at 8:44 pm to pcolatiger28
Yes-go online and find an IRS enrolled agent that can help him do an Offer in Compromise. A tax attorney will cost him good money, buy the IRS agent( poor mans attorney) can do it for less than $1k and he want pay 10-12 cents on the dollar to the IRS if he qualifies for the offer in Compromise.
I know a lady if he needs help.
I know a lady if he needs help.
Posted on 2/25/17 at 6:33 am to player711
quote:
the IRS agent( poor mans attorney) can do it for less than $1k and he want pay 10-12 cents on the dollar to the IRS if he qualifies for the offer in Compromise.
I don't personally have any experience with this, but everything I've been told is unless there was extreme and I mean extreme circumstance the IRS doesn't compromise like this.
Op, honestly it's $17k I mean frankly give me a break. Tell your buddy to sell is f250 and go get a personal loan for the rest. I'd bet good money he has some toys and other bs he could sell to easily get to $17k he just is being ignorant.
Furthermore, if he can't get a $17k loan to the IRS taken care of then he is absolutely no where close to being in a place to buy a house.
Posted on 2/25/17 at 6:54 am to player711
quote:
Yes-go online and find an IRS enrolled agent that can help him do an Offer in Compromise. A tax attorney will cost him good money, buy the IRS agent( poor mans attorney) can do it for less than $1k and he want pay 10-12 cents on the dollar to the IRS if he qualifies for the offer in Compromise.
I know a lady if he needs help
Be careful. There are some good ones out there but the vast majority are shady as crap and will just take your money and do nothing with it.
Posted on 2/25/17 at 10:15 am to pcolatiger28
How did he get $17k in the hole?
Posted on 2/25/17 at 10:21 am to pcolatiger28
as has already been stated, buying a house is the last thing your friend needs to be considering right now
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