Can You Buy a House While Owing the IRS?

About Owe Taxes

Homeownership ranks among the top aspirations for people all over the world. A massive 35% of Americans are either renting, living with family, or homeless. IRS tax problems can be an impediment for people looking to buy a house due to a fear that it may be forfeited to the government agency. One IRS tax problem that affects many taxpayers is that of unpaid taxes. In this blog, we explore whether it is possible to buy a house while owing the IRS. 

Is it possible to buy a house while owing taxes?

It is possible to buy a house while owing a significant amount in taxes. You will, however, have to clear some hurdles or seek help from a tax debt lawyer. The amount of work that will need to be invested will depend on the number of years and amount that you owe. This is because the IRS may have already activated collection procedures for the outstanding taxes, such as is the case when you receive a ‘Final Notice of Intent to Levy’. It is also easy to not know that there is a levy in place if you don’t own any assets. These are some of the issues that a lawyer will get to the bottom of when you seek IRS problems help. 

Related Blog Post: A Closer Look at the Inflation Reduction Act Tax Provisions

Tips to deal with back taxes before home-shopping

The first step is to determine how much you owe and identify any errors in your filing across the affected years. The next step is to file correct returns and pay the outstanding amount in full. If you are not in a position to pay the full amount, the next step is to seek tax relief. A reputable Dallas tax attorney can work with you to prove to the IRS that you are not willfully avoiding your tax obligations. The tax problems lawyer will enter into tax debt negotiation on your behalf to benefit from relief options such as:

  • Installment Agreements
  • Offer in Compromise
  • Innocent Spouse Relief
  • Currently Non-Collectible 

Related Blog Post: Wage Cap For Social Security Payroll Taxes Revised Upwards for 2022

Last Word

It is always best to make things right with the IRS before buying a house. Once you initiate contact with the IRS, it is important to move fast to avoid being at the receiving end of collection efforts, penalties, and criminal charges. The Law Offices of Nick Nemeth helps taxpayers in all IRS locations in Dallas, Texas with a whole range of problem solutions, including for tax debt. Your search for a reliable Dallas tax law firm ends here. To discuss your IRS problem and learn how we can provide a resolution, call  (972) 426-2553 or fill out our contact form.