Back Taxes
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.
Back Taxes Owed On Foreclosed Property
After purchasing a property in foreclosure, you could receive a notice for back taxes. Make sure you get the title commitment and owner’s title insurance at the time of purchase. Even though it is a foreclosure property, you need to make sure all title problems and tax issues are resolved.
Back Taxes May Include Unpaid Unemployment Taxes
When you’re an employer you’re supposed to pay an unemployment tax for your employees to the state where you live. The state of Illinois changed the unemployment tax rate and some employers had not kept current with their taxes. Those employers now owe back taxes for unemployment taxes.
Buyer Discovers Back Taxes Owed
A buyer discovers the sellers owe three years of back taxes. Ilyce and Sam suggest the buyer makes sure his contract for purchase of the land specifies that all taxes are to be paid in full and that he will receive a credit at closing for any taxes for the current year that have not been billed but are for the period of time that the seller owned the property.
