What about buying a car or home?
Driving a new car or an almost new car these days requires most people 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 your credit is 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 and sell it at auction.
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 IRS effectively owns. 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!
Tax issues can effect all aspects of your life and that includes the purchase of a new home or car. We are Middle Tennessee’s tax resolution experts, contact us today if you have any questions about purchasing a new home or car while having tax issues.
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Stephen Wallick started Stephen Wallick & Associates to provide tax and accounting services to Contractors, Real Estate Investors, and Realtors. Steve specializes in IRS Tax Resolution services and works with his clients to resolve cases under scrutiny by the IRS. As a tax professional and enrolled agent, Steve can save you money with IRS loopholes each year. With over 20 years going up against “The Man”, Steve is uniquely qualified to resolve even the toughest IRS cases.