[CreditGuy]

He has been waiting for them to approve his repayment plan for almost 3 months now. He has been paying them 3k a month for over 8 months already. His tax lien amount is the most I have ever seen, with that being said I just wanted to know if the company that used to post here that was able to get payment plans approved in 48hrs was still around and legit or not.

Have you pulled their tax transcripts? If not, you can get an 8821 turned around in day or two. This will show you if the IRS has entered the plan and just hasn't sent the confirmation, if the payments have been applied to the account, etc.. Maybe the IRS filed an intent to levy and the lender is concerned the account is about to get frozen or the wire/ACH intercepted and applied to the lien balance. (Yes, this happens.) If the borrower is sending $3k a month for 8 months and the money hasn't been returned or applied, then you have other issues to be concerned about too. The 8821 answers a LOT of open questions.

If borrower has submitted the executed lien payment plan and is performing as agreed under the plan, why is a formal approval necessary? Is it because of the amount? Is the lender concerned that $3k a month isn't sufficient given the size of the lien? The IRS will generally accept whatever payment plan is proposed so long as it puts the borrower on a reasonable path towards extinguishing the debt. There are of course always other factors (poor credit, other liens, etc.) that might cause UW to want more proof that the performance is acceptable. Does the borrower have a history of incurring liens or just the big one you're dealing with now?

When you come across roadblocks like this from an UW it is helpful to think about why the UW is wants this particular document. That way you can work to mitigate the concerns a document solves for without said document.