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I have a renter who got into hock with the IRS years ago. They pay with money orders I assume to keep the IRS away. Curiosity question - could these folks ever buy a house? Even land contract? Or would the IRS come get their lb of flesh if they did. I guess the IRS can seize anything. Is there a statute of limitations on IRS debt?
Curious
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I have a renter who got into hock with the IRS years ago. They pay with money orders I assume to keep the IRS away. Curiosity question - could these folks ever buy a house? Even land contract? Or would the IRS come get their lb of flesh if they did. I guess the IRS can seize anything. Is there a statute of limitations on IRS debt?

The IRS has 10 years from the date of assessment to collect. (That can be extended but isn't usually.) The tax lien attaches to all their property, but that doesn't necessarily mean the IRS would enforce it against a specific piece of property. I think they'd find their ability to borrow somewhat compromised.

Which brings me to my curiosity. Did you not run a credit report on them before renting, or do you just not care that they don't pay their bills?

Phil
Rule Your Retirement Home Fool
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Phil, surprising, as a title searcher, I am more and more often running into situations where the IRS is extending its lien.

Donna
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I am more and more often running into situations where the IRS is extending its lien.

That really surprises me. Accounts usually don't get more productive with age.

Phil
Rule Your Retirement Home Fool
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I had one earlier this year. Fortunately, the property was being sold for far more than the o/s mortgage and we were able to pay off the IRS and state tax liens. The IRS lien was over 10 years and had been extended. It takes forever the SC to file its liens, and it was within the 10 year period.

Donna
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(Donna:)I am more and more often running into situations where the IRS is extending its lien.
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That really surprises me. Accounts usually don't get more productive with age.

Phil
Rule Your Retirement Home Fool

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No, they don't, but from the IRS' (and honest taxpayers') point of view, why not extend them? It costs relatively little to keep them in place.

And while IRS seems to be fairly liberal with installment agreements, I find they're not very flexible at all with offers in compromise, despite what I've been reading in the mass media.

IRS is never going away, and neither will their liens, in all likelihood, until a taxpayer dies and takes his property with him.

Bill
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from the IRS' (and honest taxpayers') point of view, why not extend them? It costs relatively little to keep them in place.

One of the last things I worked on before retiring was a group looking at the possibility of reducing the amount of money spent on lien filings. While the filing fee gets tacked on to the taxpayer's account, you still have to collect it.

And while IRS seems to be fairly liberal with installment agreements, I find they're not very flexible at all with offers in compromise, despite what I've been reading in the mass media.

I suspect the biggest change since I left is the increased use of installment agreements which go on forever and require extending the lien.

IRS is never going away, and neither will their liens, in all likelihood, until a taxpayer dies and takes his property with him.

Actually, the place I used extensions the most was when there was an elderly taxpayer with little income and no assets other than a paid off home. As long as they were willing to extend the statute I was happy to have them live in the home until they died or had to sell in order to move to Shady Pines. Easy money.

Phil
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I will reply to the rather rude "don't you care" reply. Yes I run credit checks. The perfect renter does not exist so you talk and listen. He told me up front about the black mark I would find on his credit. He was a contractor in Florida when the real estate market suddenly tanked ( bubble) . He foolishly spent his money on food and couldn't afford the tax bill at the end of the year. His credit report showed every other bill paid and On Time. His wife and daughter were living in another state with in laws while he lived and worked here using a friends trailer to sleep. Last month he delivered his rent in person to my door because be didnt want it to be a day late via mail. He was the only prospective tenant who didn't make my stomach hurt...and in four years the rent has never been late. Not once.

So hopefully this answers your rather judgemental snipe about don't I care when people don't pay their bills. Life happens. He's probably the best and most conscientious renter I've ever had.
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So hopefully this answers your rather judgemental snipe about don't I care when people don't pay their bills. Life happens. He's probably the best and most conscientious renter I've ever had.

Lucky you, and I'm truly glad it's worked out for you. Given my past I have no tolerance for people who don't pay their taxes but, as you note, find a way to pay every other bill. I don't consider this acceptable behavior regardless of the circumstances. YMMV.

Phil
Rule Your Retirement Home Fool
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