Friday, February 2, 2018

Back Taxes and Mortgage Loans

According to B3-6-05, which was updated on January 30, 2018, the answer is not necessarily. 
"When a borrower has entered into an installment agreement with the IRS to repay delinquent federal income taxes, the lender may include the monthly payment amount as part of the borrower’s monthly debt obligations (in lieu of requiring payment in full) if:
  • There is no indication that a Notice of Federal Tax Lien has been filed against the borrower in the county in which the subject property is located.
  • The lender obtains the following documentation:
    • an approved IRS installment agreement with the terms of repayment, including the monthly payment amount and total amount due; and
    • evidence the borrower is current on the payments associated with the tax installment plan. Acceptable evidence includes the most recent payment reminder from the IRS, reflecting the last payment amount and date and the next payment amount owed and due date. At least one payment must have been made prior to closing.
As a reminder, lenders remain responsible under the life-of-loan representations and warranties for clear title and first-lien enforceability in accordance with A2-2.1-07, Life-of-Loan Representations and Warranties.
The payments on a federal income tax installment agreement can be excluded from the borrower’s DTI ratio if the agreement meets the terms in Debts Paid by Others or Installment Debt described above. If any of the above conditions are not met, the borrower must pay off the outstanding balance due under the installment agreement with the IRS in accordance with B3-6-07, Debts Paid Off At or Prior to Closing."

Is Your Spouse Innocent? IRS Innocent Spouse Relief

Is Your Spouse Innocent?  That's the title of tax attorney, Marianne Man's article, which gives a general overview of the IRS innocent spouse relief provisions, and was published in Orange County Lawyer magazine's April 2014 issue. Innocent spouse relief is one of the top most litigated issues by the IRS. If you would like to read this article, please send Ms. Man an email at

Cannibus and Taxes

Under federal tax code USC 280E, those who the federal government deem to be "illegal drug traffickers and international criminal cartels" must also pay their taxes to the IRS in a timely manner. And, many of those who operate legal cannabis operations in California are doing their best to comply with federal tax law by "toting huge amounts of cash to the California Franchise Tax Board and the IRS, as pot is still too illegal for banks to inhale." Unfortunately, these cash businesses are also attracting robbers.

Tuesday, July 1, 2014

Marianne Dawson-Man (Marianne Man) - Top Attorney 2014

For the second consecutive year, Marianne Man been selected by AVVO as a Top Attorney. The 2014 Top Attorney list will be published in the OC Register Metro magazine in September. The rating is calculated using a mathematical model that considers t...he information shown in a lawyer's profile, including a lawyer's years in practice, disciplinary history, professional achievements and industry recognition.

Tuesday, January 28, 2014

Tax Event - Chair Mrs. Marianne Dawson-Man

As the current Chair of the Tax Law Section of the Orange County Bar Association, I invite you to attend the February 13th Tax Section lunch meeting!  The topic will be "Can the IRS Effectively Regulate Tax Planning Advice?"  The presenter will be Professor Michael Lang from Chapman University, Dale E. Fowler School of Law.  1 hour of legal ethics MCLE credit.  Register at 

Back Taxes and Mortgage Loans

According to B3-6-05, which was updated on January 30, 2018, the answer is not necessarily.  "When a borrower has entered into an i...