I finally got through to a real person (who is currently working without pay). She basically said the transcripts take weeks to update, and mine should be available sometime next week, maybe -- unless it's not.

So for now, our closing attorney has been OK'd by the lender to hold $3000 in escrow until such statement is made available.

This despite that I can produce a transcript showing the amount I owed, as well as a signed and dated letter from my bank confirming the payment processed and cleared my account.

Oh well. Good news is we're still closing.

I think they are hung up because it would be past due if unpaid, might affect scoring, but not sure. I would think that showing the payment from your bank account would be sufficient, but technically that could be for anything, and they may want to see if you were assessed penalties maybe? I'm not calling you out, but the "variety of reasons that aren't totally relevant" seems to gloss over how you paid your taxes like 6-7 months later. From a super stringent view, there is nothing showing that most recent payment went toward 2017 taxes.

I'm assuming they got transcripts of your returns for the last couple years. Perhaps besides the recent payment, you could put together your last 3-4 years returns and match them to the bank transactions showing refunds/payments made in those amounts. If you match the amounts exactly for several years then that should lead to comfort as to the last payment being for 2017. Just an idea if you are jammed up.

a scammer.

Once that got sorted, I had a much larger balance than I expected. I made a payment, then entered into a payment arrangement -- hence the delayed payment.

The only thing I have as proof is my online receipt printout, which shows my payment, my name, the amount, and that it was applied towards 2017. What I do not have is the transcript from the IRS stating a balance of $0.

I connected with someone I know who is a former IRS employee, and they said that the reason my payments aren't showing is that transcripts are not updated from Dec 24th until the final week of January while the IRS prepares the computers for new tax laws and filing season. He said my updated transcript showing the balance should be available next week.

Until then, it sounds like they are going to hold $3K in escrow until I can "prove" I paid my balance.

Provide the UW with a copy of the cancelled check as well as a copy of the account it came out of.

That is sufficient for UW purposes unless the lender has some sort of overlay for additional documentation requirements.

If you have an accountant prepare your taxes as them to write a letter on their letter head stating that it has been paid

electronic withdrawal. I have the receipt for that, as well as a letter from my bank stating the funds were withdrawn and cleared my account. That is, according to the UW, insufficient to prove I've satisfied the debt.

solutions I use on a daily basis. At that point I would tell the loan officer that they need to speak with the lending or underwriting manager and be afforded an exception to whatever their policy is.

If you are using a broker they may not be able to grant an exception but if you are using a direct lender you should be able to.

But another option is to offer to set up $3k in cash escrow, and the cash
just sits in the account until closing or until until it is verified by
documentation to their satisfaction that you already paid the IRS. Their
insistence seems a bit unreasonable, but, as I say, they may be trying to
comply with some numerical ratio and this is their way of enforcing it.

Perhaps the only option if this continues.

I don't think it's a ratio problem. I believe they are concerned about the possibility for a tax lien on the property. Seems idiotic.

Years ago, I worked on a military base. An retired soldier turned civilian told me a story about buying a house in the Tampa area. The couple that was selling the house was in a real hurry to close the deal one morning and as soon as it was closed, the sellers drove away like the world was ending. That afternoon, some contractor showed up to put a lien on the house. He was too late.

I've never worked in real estate nor has anyone in the family but there's a reason all the boxes have to be checked - some buyer or seller has tried every possible con job.

Shift everything by a year.

Unless you're the only adult human left in this faded republic who has not received an official voicemail from the IRS alerting you to an outstanding tax debt, offering the option to pay it over the phone, or in the alternative, threatening to come and arrest you immediately.

I think my agent's name was Sumar. I can try to put you in touch.

I've always included a check in my manual tax return so this hasn't been an issue for me (i.e., copy of the cancelled check).

If you didn't print the online receipt, what about a copy of the entry in your bank account showing the payment to the IRS equal to the amount owning per the tax return (plus what ever penalties / interest would have been added).

I also showed them the bank statement showing the payment cleared my account.

That doesn't satisfy them. They want something from the IRS that says "LondonDomer owes the IRS $0"

The lender should accept the receipt and bank statement showing the payment cleared your account.

They're being annoyingly inflexible, especially for such a small amount of money.

.... the only thing I can think of is if they would accept the fact that what you owed was significantly less than your net worth (assuming it is).

They would typically already likely have your net worth from other forms you filled out.

Assuming that your net worth (including any 401K's, IRA's, etc.) exceeds your 2018 tax bill, that is.

Other than that, nothing else comes to mind. Curious how it turns out for you London.