How IRS 2015 Tax Lien Changes Affect You

IRS Show Effort to Help Struggling Taxpayers

Many people who are in some kind of process to get a home loan can not proceed because they have tax lien placed on their credit, or even worst on their property. In case people try to get a FHA home loan, they will soon find that the basic 2015 FHA loan requirements will not allow them to apply if their credit report is damaged by Federal Notice Tax Lien.

The IRS  as declared  some tax lien changes. They have made new and generous efforts to help taxpayers avoid tax lien trouble. This is great news for many home buyers and mortgage borrowers as it can ease their way to remove tax lien.

New IRS Tax Lien Change

The changes the IRS tax lien changes declared are meant to help taxpayers which some of them can be home buyers to avoid tax liens from appearing on their credit report. It is of the best interest of the public that tax lien will not be placed on too many people, as it might cause the economy to reach a full stop!

If too many home buyers will have tax lien on their credit, no serious lender will lend them money. This goes the same for homeowners. If too many homeowners will have Federal notice Tax lien placed on th property, than less people would buy those homes, because tax lien ‘goes with the land’, which means the tax lien and financial obligation will be passed to the new buyer even though they have not committed any tax fault.

Five IRS Changes

Here are the main IRS tax lien changes that can affect each homebuyer and homeowner, as no mortgage will be issued to a person with tax lien showing on their credit, and no property can be easily sold if it has a tax lien placed on it.

  • Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.
  • Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.
  • Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.
  • Creating easier access to Installment Agreements for more struggling small businesses.
  • Expanding a streamlined Offer in Compromise program to cover more taxpayers.

Each of these changes alone and together with the rest is capable of pulling the stuck real estate economy from the mud.

1. Significantly increasing the dollar threshold when liens are generally issued. As a credit holder you can avoid getting Tax Lien trouble by following some simple steps. The raising of the threshold will make is easier for you to stay away from trouble and have your credit report marked with tax liens.

2 Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill. When you pay your bills and you wish to remove tax lien from credit, you need to file three requests to the major credit information companies. This can succeed when you do it with the aid of a home credit repair program. The IRS is helping by making the withdrawals easier.

3. Direct Debit Installment Agreement – Just as you may have seen in the how to avoid tax lien trouble, the basic advise is to find ways to communicate with the IRS. The IRS has every interest to help tax payers to pay something, instead of ‘running around the bush’ and entering long years of hide and seek.

4. Installment Agreements for more struggling small businesses – The economy booster indicators are the small medium businesses. It is the small businesses than when they succeed, the economy and employment markets start to flourish. The IRS is doing th first step to get cooperation with small businesses and helping them out by Installment Agreements.

5. Offer in Compromise program – The IRS can demand you to pay exactly what they think you owe them. But in some cases and with professional help, you can find ways to have them compromise and accept an earlier (and reduced) payments.

IRS 2011 Changes Conclusion

The main issue to notice here is that the 2011 IRS Tax Lien changes are a good start to help homebuyers, and home owners to avoid tax lien being placed on them. The home loans and mortgage markets needs some jump start and with the two sides (IRS and taxpayers) pulling to opposite directions there is no chance to have real estate homes being sold.

Without having a clean credit report there is no chance for business to take place. As a home owner or home buyer, both need to repair the credit report, so the property could be sold and bought.

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One Reply to “How IRS 2015 Tax Lien Changes Affect You”

  1. I currently have an Offer in Compromise in review with the IRS since Sept. 2011. The problem is that a tax lien still shows on my credit report. I have been in contact the OIC department and have made payments for the file date.

    I have been pre-approved for a loan and now the loan may not meet the guidelines as they are stated. From everywhere I have read the OIC has as much credit as a payment plan with the IRS and stops all activity until the OIC judgment is granted or denied. Is there any steps my lender can take to proceed with the loan?