mptrauber wrote:
- quote -

a $142,000 tax lien encumbering the house which will prevent
refinancing for any purpose other than to pay the tax debt.

If no lien has been filed and you do as you propose, it is
doubtful that the Offer Specialist will overlook your
default of the original contract (Offer) and recommend
approval of a lesser amount as a matter of convenience.

I'm pretty sure the Offer Specialist considered your future
ability to pay in the original offer, else he/she was remiss
in his/her duties.

--
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Hello,

I'm a consumer, not a tax pro, so I hope it's okay to ask this here.
By the way, given the time of year, I hope you're all taking your
vitamins and getting some sleep.

Background:

I submitted an OIC that was accepted in late 2006. (42K on 142K of tax
debt) The OIC specialist determined that the sole source of funding it
was the equity in my house. Dues to several un-fixable circumstances I
was not aware of beforehand, I was unable to get the house refinanced
and the deadline expired.

I believe I'm going to have to resubmit the OIC. My ability to pay any
amount beyond the equity in the house remains unchanged, but my
ability to qualify for a mortgage has.

So, what I'm wondering is: Let's say I refinance the house now,
understandably while the rates are low, and use that equity to pay
down debt and do some much-needed house repairs and in so doing, have
less equity to offer the IRS in another OIC. Do you think it's likely
that the IRS might "magically" finding that they should, after all,
figure in my future wages or otherwise be otherwise and irritated that
I used the money-no matter how rationally-instead of paying them?

Thanks much for any help.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >