Back Taxes
Back Taxes Owed On Foreclosed Property Might Fall On Buyer
Buying a foreclosed property might include taking ownership of unpaid back taxes. If you buy a foreclosed house with liens or back taxes, you could be held responsible for paying the liens and back taxes upon purchase of the home or property. Buying a short sale should not make a buyer subject to liens or back taxes. Know the difference between a short sale, foreclosed property and an REO property and make sure you research the property to see if the home has any unpaid real estate taxes or liens.
How Long Should You Keep Tax Records?
How long are you required to keep your tax records? The IRS only requires you to hold onto your tax records for seven years. A lender might want to see your tax records from the last few years, but they should not require anything further back than that. If a lender wants to see older tax records than the IRS requires, find out what they are looking for, or consider working with another lender.
Back Taxes Owed On For-Sale Property
A buyer of a vacant lot learned that the sellers owe three years of back taxes on the property. If the back taxes are not paid before, or at, the closing, the buyer will become responsible for them. A real estate attorney can help this buyer ensure he is protected from having to pay the back taxes on this property.
Back Taxes Overpaid From Incorrect Assessment
The county assessor’s office incorrectly classified a single-family home as a three-family building. With the mistake corrected, the homeowner wants to know if she can receive a refund for the overpayment of back taxes.
Commercial Real Estate Tenant Doesn’t Pay Rent
What can you do when you own commercial real estate and your tenant doesn’t pay rent? How can you evict the commercial real estate tenant? Eviction laws vary by state and some attorneys specialize in evictions for commercial real estate.
Paying IRS Back Taxes
You cannot quit claim the deed to your house instead of paying back taxes. You must sell your property, then the IRS will take what it is owed on your taxes.
Buying Home That Is Behind On Back Taxes
If homeowners don’t pay your real estate taxes, the tax collector can seize your house and sell it for the back taxes that are owed. In most places, the taxes have to have been unpaid for at least a year or two and the homeowner has the right to catch up on the taxes by paying the interest that has accumulated plus any penalties or fees. The catch is, there is a period of time where the homeowner has the right to catch up with the back taxes payments and pay you back your investment plus interest.
Federal Tax Lien Lowers Credit Score
When a federal tax lien gets filed against you, your credit score will fall. What can you do to rebuild your credit score after you’ve paid off the tax lien? Paying your bills on time, not carrying a credit card balance and not closing old lines of credit all help boost your credit score.
Auto Tax Bill Thirteen Years Late
A collection agency sent a letter regarding a thirteen year old bill that they never received. Unfortunately, it looks like the bill and the interest needs to be paid because the bill was for a city tax. It is always your responsibility to pay taxes, even if you never receive the bill. Make sure you don’t ruin your credit score and keep track of your responsibilities to pay property tax, car tax, and any other bills.
Options To Pay Off Back Taxes
If you owe back taxes to the IRS, you may be able to work out a payment plan with the IRS. You may also be able to borrow against any property you own to pay the IRS. However, if you’re credit is too low to take out a conventional loan, you could also talk to the better B/C lenders (also known as sub-prime lenders) that specialize in helping people borrow against their home equity even with a poor credit score.
