Bank Tax Payment Loans

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.  Unfortunately, banks often refuse to make a loan to individuals or businesses that have tax a tax 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.  Please contact Larson Financial to get answers specific to your situation.