SIgh, IRS, sometimes they are confuzzled too. How on earth did you get a lien for that small amount? Did you piss them off? 
What do you mean by self-released in this case?
Anyway, on your transcript you are looking for the assessment date, aka the 23c date as called in some literature; that date, plus 10 years, is the statue of limitations for any collection activity by the IRS assuming you didn't extend it by various different actions. That includes the lien as I understand it, and if they sent the money back (at all) clearly the lien is no longer enforcable. Usually the date will be 3 years after the tax filing date as that's how long a consumer has to amend their taxes; however, you need this date explicitly to determine SOL. Find that out if you don't know it explicitly already.
Assuming fo the moment that you're out of SOL now, frankly in your situation I'm simply go for a straight withdrawal via form 12277. Explain the dates inolved, mark benefit to tax payer, and if you really want to be cheeky about it you might get away with "not in IRS's procedures" too, namely:
"Except in rare circumstances, an NFTL should not be filed when the balance to be reflected on the NFTL is less than $2,500 (remember, an NFTL can accommodate 15 statutory liens). If the case facts indicate that immediate filing of an NFTL will prevent loss to the government (e.g., taxpayer is dissipating assets), the NFTL may be filed. Notate the circumstance in the case history."
https://www.irs.gov/irm/part5/irm_05-012-002.html#d0e848
You should be able to ask for that case history; I know the amount of money the IRS would file for was raised from 5K to 10K in 2011 (I think) when they introduced Fresh Start; however, I can't see their having a policy of filing for anything under 1K back in 2008 but meh.... presumably they spent more money just to put it in front of a judge than that.
Anyway if unpaid the lien will naturally fall off 10 years from the filing date if it isn't refiled, and given it's already likely out of SOL, there's effectively a snowballs chance in hell of it's being refiled.
@Anonymous wrote:
Hi, Thank you for taking the time to respond.
Indeed it is a paltry amount, however it is having the same affect on my score as any amount would. My FICO on transunion, which is the bureau with no lien, is 49 points higher than Experian, I have very few accounts and the information included in my reports between bureaus is the same, I have 0$ balances on all my credit cards and no mortgage or vehicle loans. So I can truly assign the score difference to this pesky lien. In regards to the withdrawal, I have already tried that, the IRS will not withdraw it, nor will they accept payment of it, in order for them to withdraw it. I have acquired the tax lien document from the IRS, it states "self-released" on it. It self released on the refile deadline of 07/31/2012. Marking the 10 year SOL you referred to. In their exact words, the lien has expired. Meaning it is no longer enforceable. What are the chances of getting this removed from Equifax and Experian? And exactly how and what information should I include in the dispute. I have read that released liens (released by being paid, not because of SOL running out. Are to be removed 7 years from filing date. Which was 12/15/2008, (over seven years ago) will they differentiate this one being "self-released" by the SOL? as opposed to "released" from being paid? I want to dispute it and get it right the first time. I am afraid that sending in a dispute that says "lien is expired, please remove" may not get it done. On the other hand, sending in the IRS form I have that has ALL of the data about the lien, may result in them just updating it to released, meaning it will stay until 7/31/2019. Effectively making this a thorn in my side for 18 years after the tax year it is for.
Paid typically means released but you're an awkward circumstance; if a lien is released (read as paid but maybe yours qualifies) it's 7 years from the filing date, not the release date... meaning if paid / released the date would've been 12/15/2015 for falloff. What was the reason for the denial of withdrawl?
The right dispute would be as obsolete in this case with the relevant supporting documentation would be my approach with the CRA's; you may have to go a few rounds and they might not play ball but it's worth a shot rather than waiting the 2.5 years.
There's also a special handling tax payer advocate type function in the IRS, I don't know how to reach them directly but you may want to Google that as if they won't accept payment on the old tax debt, there shouldn't be a lien there in theory. Petty and punitive.
P.S. you want at least one small balance on a single credit card at a minimum.
@Revelate wrote:P.S. you want at least one small balance on a single credit card at a minimum.
+1
This will give you better scoring vs all reporting zero balance
@Anonymous wrote:
Hello all, I have some updates to share on this particular situation.
I sent in disputes on this expired federal tax lien. Both bureaus removed it immediately!!! Whooohooo!! This $746 expired lien was affecting my FICO scores by 33 points on Experian and 29 points on Equifax respectively. I now have a 100% clean report on all 3 bureaus!!
If anyone is experiencing something similar, send in a copy of your drivers liscense, a short letter explaining its expired and you are requesting removal, the respective bureau dispute form and a copy of the lien filing (the IRS will send you this if you don't have it) and you should have an excellent chance at removal.
Thanks, Troy
Congratulations!