₪₪₪ I owe $45k in back taxes. Better to take the fed lien and pay the irs, or borrow the amount at high %rate?
I’m currently on a fast-track payment plan with the IRS for about $20k due to back-taxes going all the way back to 2004. I own a business and last year put more cash into when I should have put towards estimated taxes. Situation now is I owe about $19k for 2008.
Question is: Do I fold the $19k into the $20k at take the federal tax lien hit on my credit report, or is it better from a financial planning perspective to try to find a lender for $40k and pay the entire balance off even though the interest rates will be burdensome.
My goal is to be able to purchase a home in about 3-5 years. Even if I pay off the entire federal lien in about 4 years, how long will that remain on my credit history and will it have a negative impact for potential lenders?
Category: IRS Problems
