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Bond for guarantee of payment?

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JennyB

Junior Member
(State = VA) I have a sole proprietorship business. Due to unfortunate circumstances, I did not pay taxes a while ago. :( I contacted the IRS about a year ago to resolve the issue and make restitution. I think we are almost done with the discovery period and I was waiting to find out my total liability. I just received a letter, however, that advised that they were filing a lien against my current and future possessions to guarantee payment. :eek: I looked up the lien info on the IRS web site and noticed a sentence about using a bond to guarantee payment of taxes. Does anyone know if this is an option (obtaining a bond instead of having a lien)? What sort of bond company would I contact? BTW, I'm thinking that a bond would be preferable so that my credit isn't impacted. Thank you!
 


LdiJ

Senior Member
JennyB said:
(State = VA) I have a sole proprietorship business. Due to unfortunate circumstances, I did not pay taxes a while ago. :( I contacted the IRS about a year ago to resolve the issue and make restitution. I think we are almost done with the discovery period and I was waiting to find out my total liability. I just received a letter, however, that advised that they were filing a lien against my current and future possessions to guarantee payment. :eek: I looked up the lien info on the IRS web site and noticed a sentence about using a bond to guarantee payment of taxes. Does anyone know if this is an option (obtaining a bond instead of having a lien)? What sort of bond company would I contact? BTW, I'm thinking that a bond would be preferable so that my credit isn't impacted. Thank you!
Some insurance companies will assist with bonds. Talk to yours.
 

JennyB

Junior Member
(State=VA) I forgot to ask about this part of it: The lien will be for the full amount that they have determined that I owe. I'm trying to negotiate a smaller settlement amount. Presumably, in order for them to release the lien, the bond will have to be for the same amount as the lien. Also, if the bond issuer needs collateral, I may not be able to pursue that option because I don't own a house and drive an 11 year old car. The only asset I really have is my sole proprietorship service business. So the question is: If I can secure a bond from my insurance company for the full obligation amount, would that cause the IRS to infer that I have the means to repay the full amount and therefore make them less likely to negotiate a settlement?
 

LdiJ

Senior Member
JennyB said:
(State=VA) I forgot to ask about this part of it: The lien will be for the full amount that they have determined that I owe. I'm trying to negotiate a smaller settlement amount. Presumably, in order for them to release the lien, the bond will have to be for the same amount as the lien. Also, if the bond issuer needs collateral, I may not be able to pursue that option because I don't own a house and drive an 11 year old car. The only asset I really have is my sole proprietorship service business. So the question is: If I can secure a bond from my insurance company for the full obligation amount, would that cause the IRS to infer that I have the means to repay the full amount and therefore make them less likely to negotiate a settlement?
Not if you get it from your insurance company. They don't normally require collateral (if they are willing to issue the bond) for them, its no different than any other kind of insurance....although they will most likely do a credit check. It also may be fairly expensive.
 

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