topic Re: Removing satisfied tax liens from credit reports in Rebuilding Your Credit

Removing satisfied tax liens from credit reports

ficojoe — Fri, 03 Aug 2012 15:31:56 GMT

I have three tax liens from around the same time frame. All were paid quickly after they were filed. The leins are from two states and one from the IRS. One in on courthouse, two in another.

What are the options for having these removed from my report? From searching these forums, I see the following ideas:

* File motion to vacate in the courthouse, if vacated forward ruling to CRAs.

* Dispute and/or sue based on FCRA violaions since a 3rd party collected the info from the courthouses then sold it to the CRAs without first notifying me that they were going to do that.

* Send GW letters to each tax authority and ask them to remove the info from the credit report.

* Contact the court clerks asking them to provide a letter that can be given to the CRAs.

Which idea(s) are best? Which can actually work? What is the best strategy to handle these?

Re: Removing satisfied tax liens from credit reports

Chbraswell — Fri, 03 Aug 2012 16:07:34 GMT

I have two liens from the state on my credit and I dont know if it is the same but I was advised to contact the tax department and get a letter stating my release of lien. Then I had to go to the clerk of courts where they gave me a letter to have it removed from the credit bureaus. As of today I still have to mail those documents off to the bureaus so that it can be updated. It may be a bit easier than we think depending on where you live.

Re: Removing satisfied tax liens from credit reports

brcamacho — Fri, 03 Aug 2012 17:01:02 GMT

I have the same issue, but after mailing proof that the Judgments were satisfied. I was told they would still be on my report, just reflecting they are paid until they fall off.

Re: Removing satisfied tax liens from credit reports

iwant700fico — Fri, 03 Aug 2012 17:08:04 GMT

IRS has a new policy that will remove satisfied tax liens from your credit. On February 24th, 2011 the IRS announced new policies regarding the collection of unpaid taxes and liens. Specifically, if the tax payer pays their liens “in full” the IRS will “withdraw” them.

hope this helps

Re: Removing satisfied tax liens from credit reports

ficojoe — Fri, 03 Aug 2012 20:09:12 GMT

iwant700fico wrote:
IRS has a new policy that will remove satisfied tax liens from your credit. On February 24th, 2011 the IRS announced new policies regarding the collection of unpaid taxes and liens. Specifically, if the tax payer pays their liens “in full” the IRS will “withdraw” them.
hope this helps

Thanks. I called the IRS and they referred me to the "Fresh Start Program"

For others interested, to remove an IRS lien that has been paid, you do the following:

1) fill out IRS form 12277. In box 11 select the last option "best interest of taxpayer and government". In box 12, type "Fresh Start Program" (search irs.gov for form 12277)

2) Fax form to phone number for your area as listed in publication 4235. (search IRS.gov for pub 4235)

3) Wait 30-45 days

4) The IRS will file a withdrawal with the court house where the lean was filed and will mail you a copy

5) provide your copy of the withdrawal to the three CRAs to expedite removal

Calling the state tax departments did no good (for my two states). They simply offered to provide proof that the tax liability has been paid. They will not help remove it completely.

Re: Removing satisfied tax liens from credit reports

Chbraswell — Sat, 04 Aug 2012 17:59:03 GMT

Yeah they wont reach out the the credit bureau but what i was told is that they would give me the paper work and I can send it off myself. So I did it today, i'll let you know how it works out! :)

Re: Removing satisfied tax liens from credit reports

ficojoe — Sat, 04 Aug 2012 22:42:50 GMT

Chbraswell wrote:
Yeah they wont reach out the the credit bureau but what i was told is that they would give me the paper work and I can send it off myself. So I did it today, i'll let you know how it works out! :)

Is that the IRS or a state? What state?

The IRS was cooperative, but the two states I contacted were not.

Re: Removing satisfied tax liens from credit reports

Chbraswell — Sun, 05 Aug 2012 19:48:54 GMT

State and it is Ohio

Re: Removing satisfied tax liens from credit reports

ficojoe — Sun, 05 Aug 2012 19:53:46 GMT

Chbraswell wrote:
State and it is Ohio

Hope it works. West Virginia and Indiana were not that helpful. I sent letters to both courts asking the clerk if they would provide me a letter that I could forward to the CRAs to try to get deletes.

Re: Removing satisfied tax liens from credit reports

OhioCPA — Sun, 05 Aug 2012 22:24:39 GMT

Chbraswell wrote:
State and it is Ohio

Ohio tax liens are judgment liens and are filed with the clerk of courts. While the procedure you have mentioned will have the lien recorded as released, it won't necessarily remove it from your credit file. A released tax lien can stay on your credit file for seven years from the date it is recorded as released.

The IRS's new procedure is to have the lien withdrawn. This is separate from having it released. By having it withdrawn it is treated as if it never happened in the first place and should be removed from your credit file.

I am not aware of any states that withdraw liens.

Re: Removing satisfied tax liens from credit reports

thankfulheart — Mon, 06 Aug 2012 03:29:09 GMT

OhioCPA wrote:
Chbraswell wrote:
State and it is Ohio

Ohio tax liens are judgment liens and are filed with the clerk of courts. While the procedure you have mentioned will have the lien recorded as released, it won't necessarily remove it from your credit file. A released tax lien can stay on your credit file for seven years from the date it is recorded as released.

The IRS's new procedure is to have the lien withdrawn. This is separate from having it released. By having it withdrawn it is treated as if it never happened in the first place and should be removed from your credit file.

I am not aware of any states that withdraw liens.

I have an Ohio tax lien that I've been banging my head against for nearly a year now. Paid it in Mar 2007, but did not realize it had to be recorded at the courthouse until Nov 2007. Despite it being "cancelled" (according to the release) in March, it still shows as November on the CRAs. VERY frustrating, adding a random 8 months reporting. I've written a boatload of letter to various agencies, representatives, etc not understanding why I'm "sentenced to a 7 year debtor's prison term" for something I paid in full as soon as I found out about it (it was estranged husband's filing, I thought he paid it). I don't understand why the IRS can withdraw, but the states can't. Seems like it would be in their best interest to not have that anchor dragging down credit scores when the citizen paid the debt. The goal is to collect the taxes, not inflict punitive damages, right?

Re: Removing satisfied tax liens from credit reports

ficojoe — Mon, 06 Aug 2012 23:10:00 GMT

Is it possible to file a motion to withdraw a state tax lien? On what basis would that work?

Re: Removing satisfied tax liens from credit reports

Chbraswell — Tue, 07 Aug 2012 16:19:41 GMT

Well then my friend I just wasted money for something I should have left alone. lol

Re: Removing satisfied tax liens from credit reports

Aspireto850 — Mon, 13 Aug 2012 00:31:23 GMT

Thanks for the detailed instructions. I will be using it tomorrow. Wish me luck.

Re: Removing satisfied tax liens from credit reports

stillirise — Tue, 18 Sep 2012 05:00:38 GMT

I did get a letter from the tax agency after they reviewed my return and discovered I owed no tax at all. The courthouse refused to acknowledge the letter. Disputing it at the CRB's did no good at all. I have sent the state letters to the CRB and the courthouse and nearly 8 months later they will not remove it. Nor will they show it as paid.

Re: Removing satisfied tax liens from credit reports

iwant700fico — Tue, 18 Sep 2012 17:12:21 GMT

you need to ask the Tax agency to give you "withdrawl lien' papers. If its their mistake they will do this. Hope this helps.

Re: Removing satisfied tax liens from credit reports

stillirise — Tue, 18 Sep 2012 17:33:31 GMT

I have the withdrawal letter...its completely ignored by Equifax

Re: Removing satisfied tax liens from credit reports

stillirise — Tue, 18 Sep 2012 17:35:11 GMT

How do I take action against Equifax?

Re: Removing satisfied tax liens from credit reports

iwant700fico — Tue, 18 Sep 2012 17:41:34 GMT

1. Send it certified witha copy to their legal department. File a small claims lawsuit if they refuse.

2. Go to your county clerks's office and give them a copy, they are also obligated to remove it.

Re: Removing satisfied tax liens from credit reports

jojo-69 — Mon, 10 Dec 2012 16:16:34 GMT

I just dropped in here on a google search and noticed on the IRS website it has slightly different instructions for form 12277. Specifically, it says to check box 11, not box 12. Here is a link to the instructions:

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Fresh-Start-Notice-of-Federal-Tax-Liens