we have a tax lien on our home. we have alot of equity as well but can not refinance becasue of the lien - we would refinance an d pay off the tax lien if we could
2007-07-19 05:06:22 · 4 answers · asked by mary 1 in Business & Finance ➔ Taxes ➔ United States
Some are real, and some aren't. I would be very careful with who I chose. Try to find someone in your local area. I'm surprised that you can't refinance your house, unless what you owe on the house, plus the lien is more than what it is worth. Although it's possible that your bank doesn't want to refinance your house because they would become second in line to the IRS lien. I don't think the IRS would let you get away with paying pennies on the dollar because of the large equity that you have on your house. Check with the better business bureau, and/or check with family, friends, and neighbors as to any tax relief attorneys.
2007-07-19 08:32:32 · answer #1 · answered by Anonymous · 1⤊ 1⤋
You need to be very careful with whom you select to represent you. There are alot of tax resolution companies out there that are complete scams. Especially some of the larger ones. I am an Enrolled Agent and represent taxpayers in these matters on a daily basis. No one should be selling you on an Offer in Compromise without first analyzing your ability to pay the tax debt. You should also make sure that you only talk to an Enrolled Agent, a CPA, or an Attorney that specializes in tax representation. Alot of companies will only have you talk to a salesperson upfront that will sell you a so called "pennies on the dollar" offer in compromise...don't fall for it! Speak with someone who is qualified first. You may also wish to consider an istallment agreement or a part-pay installment agreement which would likely be best suited to you if you have the equity in your home to pay the debt but cannot refinance at this time. I have alot of good information on my web-site about both the Offer in Compromise Program and Installment Agreements, that is there free of charge for your reference without having to hire anyone. If you decide you do wish to have professional representation you are of course welcome contact us. There is no fee and no obligation for the initial telephone conversation. Best of luck.
eTaxrelief.com
2007-07-20 22:48:51 · answer #2 · answered by Chris J, President at eTaxrelief 2 · 0⤊ 1⤋
Keep in mind that there are 100 pennies on a dollar. If they settle for 99¢ on the $1, they've delivered on their promise.
They are pushing a program known as an Offer in Compromise. There are 3 basic ways that you can qualify. Doubt as to liability; more than you could ever pay; or equitable relief. For the most part you need to have a debt so huge that you could never hope to pay it off. If you have enough equity in your home to clear the debt then it would not be approved. Period.
You should be able to do a cash-out re-fi for the debt if you have enough equity in your home. I know several folks who have done just that.
2007-07-19 05:24:51 · answer #3 · answered by Bostonian In MO 7 · 5⤊ 1⤋
If the equity in your home would cover the tax bill, the OIC will be denied.
The places that advertise on TV and Radio generally have very large $5k-$10k in upfront fees and they don't have any higher rate of success in getting the OICs accepted than anyone else.
2007-07-19 05:38:33 · answer #4 · answered by Wayne Z 7 · 1⤊ 0⤋