Loans to Pay Taxes

Borrowing from your bank

If the taxpayer is able to obtain a loan from a bank, often it is in the taxpayer’s best interest to do so.  Banks charge less interest than the IRS and state taxing authorities when on a traditional installment agreement.  Furthermore, penalties continue to accrue while the taxpayer continues to owe the government. Banks often refuse to make a loan to individuals or businesses that have tax a lien.

The IRS will occasionally subordinate its claim to another lien holder.  Such an action could allow a taxpayer to refinance a high-rate mortgage.  Subordination does not remove the IRS lien on the property and is only approved if the new lien will likely facilitate collection of the outstanding tax liability.

The best option is often getting a "loan" from the government, in the form of a payment plan or installment agreement. Larson Financial can often negotiate a payment plan with the government much quicker and with higher success than getting a bank to lend against a tax debt.

We strive to save our clients money, time and stress.  Just as there are many different tax related problems, there are many options for tax resolution.  Call us at 888-902-0778 for a free consultation. In a few minutes we will help you to better assess what options are best for your unique situation.