Want to pay the IRS with a loan. Offer in compromise?

[mynwhome]

HI, I live in WA and currently own the IRS about $80k including all the penalties and interest on back taxes from 04/05/06/07.

I am on a new payment plan with them for $300 a month which was obtained after sending them all financials, bank statement etc. I was helped in this by an attorney who I am no longer being represented by.

I am newly married. My wife makes an ok wage but I am a realtor and make hardly anything at the moment. The future of real estate looks bleak for the next 3 years at least and so funds have been real tight around our house especially since I'm supporting a kid from my previous marriage.

My broker, who is a friend of mine, is willing to lend me $30k if it will make the IRS go away. He won't lend it to me otherwise as he wants to know that he is the only major debt i would have.

My question is, how do i propose to the IRS taking this loan for payment in full? I don't have the 20% needed to file an offer in compromise and fall above the income guidelines for a 656-A. Should I just call them up and say "hey, I have this loan available, want to make a deal?"

While I was talking with the local IRS agent about the payment plan I had mentioned offer in compromise and she said I wouldn't qualify. But this is 30K not 3k. Don't you think they'd want it? I'd have to imagine that a good portion of the 80K is penalties at this point anyway.


Any help is much appreciated.

Thanks What is the name of your state (Washington)?

[LdiJ]

Originally Posted by mynwhome

HI, I live in WA and currently own the IRS about $80k including all the penalties and interest on back taxes from 04/05/06/07.

I am on a new payment plan with them for $300 a month which was obtained after sending them all financials, bank statement etc. I was helped in this by an attorney who I am no longer being represented by.

I am newly married. My wife makes an ok wage but I am a realtor and make hardly anything at the moment. The future of real estate looks bleak for the next 3 years at least and so funds have been real tight around our house especially since I'm supporting a kid from my previous marriage.

My broker, who is a friend of mine, is willing to lend me $30k if it will make the IRS go away. He won't lend it to me otherwise as he wants to know that he is the only major debt i would have.

My question is, how do i propose to the IRS taking this loan for payment in full? I don't have the 20% needed to file an offer in compromise and fall above the income guidelines for a 656-A. Should I just call them up and say "hey, I have this loan available, want to make a deal?"

While I was talking with the local IRS agent about the payment plan I had mentioned offer in compromise and she said I wouldn't qualify. But this is 30K not 3k. Don't you think they'd want it? I'd have to imagine that a good portion of the 80K is penalties at this point anyway.


Any help is much appreciated.

Thanks What is the name of your state (Washington)?

Give the IRS a call and discuss it with them. Be sure and discuss the fact that your friend will not make the loan to you unless its guaranteed to 100% clear up the IRS debt.

[irsos]

Originally Posted by mynwhome

HI, I live in WA and currently own the IRS about $80k including all the penalties and interest on back taxes from 04/05/06/07.

I am on a new payment plan with them for $300 a month which was obtained after sending them all financials, bank statement etc. I was helped in this by an attorney who I am no longer being represented by.

I am newly married. My wife makes an ok wage but I am a realtor and make hardly anything at the moment. The future of real estate looks bleak for the next 3 years at least and so funds have been real tight around our house especially since I'm supporting a kid from my previous marriage.

My broker, who is a friend of mine, is willing to lend me $30k if it will make the IRS go away. He won't lend it to me otherwise as he wants to know that he is the only major debt i would have.

My question is, how do i propose to the IRS taking this loan for payment in full? I don't have the 20% needed to file an offer in compromise and fall above the income guidelines for a 656-A. Should I just call them up and say "hey, I have this loan available, want to make a deal?"

While I was talking with the local IRS agent about the payment plan I had mentioned offer in compromise and she said I wouldn't qualify. But this is 30K not 3k. Don't you think they'd want it? I'd have to imagine that a good portion of the 80K is penalties at this point anyway.


Any help is much appreciated.

Thanks What is the name of your state (Washington)?

Calling them will be a waste of time. The Offer program does not work that way and it is the only way to have a liability compromised for doubt as to collectibility. You will need to formally submit an offer.

The offer amount is based on your ability to pay, not your ability to borrow. It may be much less or much more than $30,000. They will look at the equity in your assets and the amount you can pay monthly to determine that. Assuming $300 per month was the correct amount based on your 433-A AND you had no assets, you may be able to settle for about $15,000. This example is for illustration only. You need to find a tax professional with proven experience in this area to assist you.