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    2 Replies Latest reply on Aug 5, 2008 4:04 AM by LUCKIEST

    Loan to cover Back Taxes and levy?

    BuilderLLC Newbie
      I have been in business for 10 years and have fallen behind on taxes the past two years despite substantial business growth. I had set up a payment plan with IRS and was making payments monthly. I have recently received notification that the payment plan has been canceled (due to late payment) and a lien has been placed against me. I owe approx. $50,000. Is it best to seek a bank loan to wipe out this tax debt and convert it to a personal debt? And will a bank be interested in loaning for this reason. I'm concerned with having the lien issue. Thanks in advance
        • Re: Loan to cover Back Taxes and levy?
          Bean Counter Adventurer

          Builder LLC,
          First, you can call the IRS and set the payment plan back up. The IRS would rather have you paying monthly that to search out assets. Takes less time on their part. Call and ask for it to be set up again.

          Second of all, a bank loan may indeed have a better interest rate than the IRS. Might want to talk to the bank before the lien or levy goes into effect.


          Make sure to take notice between a lien and levy. Lien means they will ding your credit and they are first in line to get paid. Levy means they are coming for your assets including your bank account.


          Many people do not truely understand the difference. Well not until the money is all gone.

          For that amount owed you the IRS will often assign a revenue officer to the case. I have assume that the tax is income tax and not trust fund tax.

          Banks will indeed loan monies if you can show the lien was immediately removed and if your credit, collateral ect are in good order. They will also look at proforma statements. Check around and see what you find. But do not be surprised if the scrutiny his high.
          • Re: Loan to cover Back Taxes and levy?
            LUCKIEST Guide
            Loan to cover Back Taxes and levy?? Welcome

            Good answer from Bean Counter. As B C said call the IRS and make

            the payment plan your biggest priority.

            Having been in business 10 years, do you have an Accountant, A Lawyer??

            Good luck, LUCKIEST