Legal Question in Real Estate Law in New York

Yes, you can probably buy the home- but if the IRS knows that you have the money they want, they will look for a way to get it. More than likely, your refunds will be confiscated if you owe to the IRS.

Note, however, that on occassion, and especially if you are buying a condo, co-op, or a home that has an HOA, the sellers will do a lien search on you, and that will be a reason to reject you.

Also note, that the IRS may find a way to put that lien on your home- and that can cause you a whole new set of problems- including you losing that home in a tax auction.

If you have state taxes due, right now is a great time to take care of it. New York State has a program that lasts only until March 15, 2010. They will remove up to 80% of the penalties and interest on your past due taxes and tax warrants. Many other states have similar programs from time to time.

For anyone wanting to finally pay off past due taxes, call the NYS department of Taxation and Finance and enroll in the PAID program. If you are doing any real estate transactions, this may really help you.