Id Stolen to create a federal tax lien

[Anonymous]

Last week was quite a shock for myself & Mrs. Backwoods as we learned someone had filed 2016 taxes using our information to create a huge balance due and federal tax lien.  When we first learned of the balance due we replied it was not us we have not filed.  The reply we got was yes you did file. Two days later a federal tax lien came in the mail.  We sent a request for lien withdrawl.  I am sure the IRS will eventually correct the fact we have not filed but am more concerned about the tax lien.  Will the National settlement so talked about that goes into effect in June keep the information from reporting? What is the likelyhood of our cards being cancelled and how to we explain this?   Yes we have a strong idea who did it.  This was a payback for catching them trying to assume our ids years ago.  They got caught then and had to pay money back. Dispute it if does get posted under National Settlement (National Consumer Assistance Plan) for not have all required elements?    I really don't want all our cards cancelled for this "nice" other related person.   Any suggestions welcome. 

[RobertEG]

File a police report and use the identity theft process under FCRA 605B to get the information (lien) blocked from your credit report.

The identity theft process does not rely on any determination that there was actual identity theft, and requires no input from the IRS.

It relies only on your sworn statement, and then permits block of the info from your credit report while the investigation and determination is progressing.

[Anonymous]

Thank you. I did not think about that. It has not shown up yet.

[Anonymous]

update We got a withdrawal in today's mail from the IRS.Thank goodness