The IRS can issue a tax lien on your property and prevent you from refinancing your property.
There are several methods available in resolving tax lien issues including resolving the tax debt through the offer in compromise program, or negotiating a payment plan. However if you have enough equity in your property to pay for the tax debt you can request the IRS to subordinate the tax lien and allow you to borrow money from your property to pay-off the tax debt. This loan allows you to finance your tax debt with an affordable monthly payment plan, and deduct the interest on the loan from your income on your tax return.
