topic Re: IRS Lien Removal in Rebuilding Your Credit

IRS Lien Removal

Njoy — Sat, 21 May 2011 08:11:48 GMT

Hi myfico friends,

Has anyone out there applied for lien removal from the IRS based on their new guidance permitting lien removal once the lien is paid (if requested by the tax payer) If so can you give me some guidance on how to proceed? I have two paid liens that I am anxious to have removed.

Thanks!

Re: IRS Lien Removal

LS2982 — Sat, 21 May 2011 21:26:15 GMT

I would like this info as well as I have a MD state tax lien that is paid but i need gone.

Re: IRS Lien Removal

guiness56 — Sun, 22 May 2011 00:14:45 GMT

Have you tried looking at the irs.gov website. It should tell you what you need to do there.

Not sure that the IRS will help with a state tax lien. You state statues should tell you what, if anything, can be done. I would start by calling the tax auditor/assessor or what ever they are called in your state.

Re: IRS Lien Removal

gre0481 — Sun, 22 May 2011 15:09:46 GMT

California Franchise Tax board was able to remove my lien for State Tax within 24 Hours. I just contacted their 800 number.

Re: IRS Lien Removal

eharley0142 — Tue, 29 Nov 2011 18:26:11 GMT

I too have two "released" tax liens originally from '03 and '05 reporting on my credit report. One that was paid 10/08, and one that was paid 12/09. Since they're not going to come off until 2015 and 2016 respectively, I was really excited by the news reports in February that the IRS would now withdraw the liens (http://www.irs.gov/newsroom/article/0,,id=236540,00.html).

I tried asking CPAs about getting the liens withdrawn and no one seemed to know what I was talking about. So I gave it a shot myself. Here's what I did:

- On 5/4/2011, I filled out and mailed Form 12277, Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (http://www.irs.gov/pub/irs-pdf/f12277.pdf), to the address in Oakland, CA listed in Publication 4235 (http://www.irs.gov/pub/irs-pdf/p4235.pdf).

I included a cover letter explaining the situation and my reasoning for why the lien withdrawal would be in the best interest of the US government (improved credit leading to better future tax compliance), which is what I thought was the now acceptable rational.

The liens are kind of old, and I no longer have the original notice or the notice of release when I finished paying things off. So I included copies of the relevant portions of my credit report showing the dates, amounts, and locations of the filed liens.

- Certified mail receipt says that the mail was delivered 5/7

It's been 4 weeks and I have heard nothing back. I repeatedly tried calling the phone number in Publication 4235, and got voice mail each time. Last week, 1 month after I mailed the paperwork, I called and left a voice mail asking for a call back. Nothing yet.

I have read elsewhere that some people have gotten a notice of withdrawal within 2 weeks of sending in their requests.

Right now my score is a 710 (EQ) and I cannot get any new credit cards. In addition to the 2 tax liens, I have a Chapter 7 bankruptcy that was discharged 1/04, 7+ years ago. I have been trying to do anything I can to build my credit report. Four years ago, I got a secured Orchard Bank card with a $300 CL which after 1 year was converted to an unsecured card. Last Fall, I was able to get a vehicle loan at a local credit union at 4.34%. That was after I was approved for an 7.99% loan at the dealer through Wells Fargo.

Re: IRS Lien Removal

ssghandless — Tue, 07 Jun 2011 18:16:17 GMT

What number did you call to have this removed? The regular hot line keep moving me to other numbers. Help...

Re: IRS Lien Removal

eharley0142 — Tue, 07 Jun 2011 18:53:51 GMT

I called the phone number for the person in my area listed in this document

http://www.irs.gov/pub/irs-pdf/p4235.pdf

Re: IRS Lien Removal

ssghandless — Tue, 07 Jun 2011 19:03:44 GMT

Thanks, I appreciate it.

Re: IRS Lien Removal

eharley0142 — Tue, 29 Nov 2011 18:26:32 GMT

Update 6/16:

I got copies of the Notification of Federal Tax Lien, and Certificate of Release of Tax Lien from my county recorder's office. Faxed those to the # in the publication I mentioned before. Got a reply the next day.

One lien (filed 2/2005, released 12/2009) was withdrawn. I got a copy of the Certificate of Lien Withdrawl from the IRS. It hasn't been recorded at the county yet, but I am going to send it to the CRAs pronto.

The other lien (filed 3/03, released 10/08) was denied a withdrawal. The IRS says that the lien was released because the Statue of Limitations was reached and not because I satisfied the debt. I am going to have to straighten out what's going on there.

But, I'm very happy to have one lien removed!

Re: IRS Lien Removal

ssghandless — Thu, 16 Jun 2011 17:59:23 GMT

Lastest update on the IRS LIEN...I asked for specifics on the lien and they removed them BOTH! I was pretty surprised. I had paid them off a few months prior to make sure they were recorded in other places so that is joy. Of course TU and EX were fast but EQ is being stupid about it and the time frame. I havent heard back from them as of yet.

Re: IRS Lien Removal

Booner72 — Thu, 16 Jun 2011 18:06:15 GMT

How do you know if you have a tax lien? Would it be on your credit reports?

Re: IRS Lien Removal

Njoy — Sun, 19 Jun 2011 11:27:27 GMT

WOW!!! So you had two liens both of which were reporting as released. You sent the copies of the certificate of release to the IRS and they have completely withdrawn the liens...does this mean they no longer appear on your report?

I am so excited about that I could scream! Congrats to you for being aggressive....I am next...to the Courthouse in the AM!

Re: IRS Lien Removal

Njoy — Sun, 19 Jun 2011 11:31:21 GMT

MYFICO 624

How do you know if you have a tax lien? Would it be on your credit reports?

Response:

Yes a lien would appear on your report under "Public Records".

Re: IRS Lien Removal

eharley0142 — Sun, 19 Jun 2011 17:17:59 GMT

Njoy wrote:
WOW!!! So you had two liens both of which were reporting as released. You sent the copies of the certificate of release to the IRS and they have completely withdrawn the liens...does this mean they no longer appear on your report?

I am so excited about that I could scream! Congrats to you for being aggressive....I am next...to the Courthouse in the AM!

Yes, but not quite. I got one of the liens withdrawn. The other lien was denied a withdrawal.

The IRS says that I didn't pay the amount due in full, and as such they will not grant a withdrawal. They say that the lien was released because the Statue of Limitations on the collection had expired. I am not sure how they are calculating that. The tax years on that lien are 1999, 2000, and 2001. The lien was filed in 2003, and released in 2008. Normally, the SOL on tax liens runs 10 years. I thought that my husband and I paid off all our tax debts, but I don't have the records any more. I am going to write a letter to the Office of the Taxpayer Advocate and see if I can plead my case with them.

I'm not sure if the lien that was withdrawn has been removed from my credit reports yet. I'm waiting another week to see if the documents get recorded at the county. After that, I'm going to fax a dispute to the CRAs and get that ball rolling.

If it doesn't work out, I'm not too worried. The lien should drop off 5/2013, and my bankruptcy drops off 9/2013.

Just got to hang in there, and find a credit card!

Re: IRS Lien Removal

eharley0142 — Wed, 29 Jun 2011 01:04:15 GMT

Update on what's been going on.

The lien was withdrawn on 6/9 and mailed to the county recorder's office.

It was recorded by the county on 6/20, and started showing up in their online database on 6/22.

On 6/22 I submitted online disputes with the three CRAs.

Equifax got back to me today and said that the lien was verified. I put together a dispute letter and FAX'd them the letter, my credit report, the certificate of lien withdrawal, and the letter from the IRS explaining that the lien was being withdrawn.

While I haven't heard back from TU or EXP, I went ahead and FAX'd the same information to TU.

I couldn't find a FAX number for EXP, and there is some indication that they are no longer accepting disputes by FAX.

I will put a dispute in the mail to EXP.

Re: IRS Lien Removal

pritchardhallhokie — Wed, 29 Jun 2011 11:33:17 GMT

Does this same thing work on State Liens?

Re: IRS Lien Removal

eharley0142 — Wed, 29 Jun 2011 14:01:34 GMT

Heard back from TU the day after I FAX'd them certificate of withdrawal.

They deleted the lien.

1 down, 2 to go.

Re: IRS Lien Removal

beamMEup — Wed, 29 Jun 2011 14:54:58 GMT

Nice work!

Re: IRS Lien Removal

Booner72 — Wed, 29 Jun 2011 21:42:07 GMT

Yay! Please keep us informed of the process. Very helpful. Pretty decent of the IRS, eh?

Re: IRS Lien Removal

Njoy — Wed, 29 Jun 2011 23:27:30 GMT

That is awesome! Thanks for the encouragement! Can't wait to see how your score improves!