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Possible NC State Tax Lien

Established Member

Possible NC State Tax Lien

Does anyone have an experience with NC state tax liens? I haven't had one issued on me yet, but according to a rep on the phone, they can issue it at anytime. I owe from 2011 and 2012. I have pretty decent credit right now and I don't want this to affect it. The problem iis I can't start paying on it right now. They told me I can do a payment plan which I wouldn't mind doing when I get back to work. If it does go on my credit, can it be removed once it's paid? I've read that some states do this.
Message 1 of 14
13 REPLIES
Community Leader
Valued Contributor

Re: Possible NC State Tax Lien

They will garnish your wages and take your tax refunds if you don't work out a payment plan. As far as credit, I could never find anything where they would vacate the lien, just showed it paid. I never pulled a copy so I'm not sure how it shows up in the public records or whether it meets the new reporting guidelines.

I'm surprised it took them this long to come after you for the amount owed. They're usually much faster about it.


EQ 679 EXP 700 TU 763
Message 2 of 14
Community Leader
Epic Contributor

Re: Possible NC State Tax Lien

Tax lines are required to be excluded no later than 7 years from the date paid.

Thus, the exclusion period does not begin to run until the debt is paid.

 

Under the new National Consumer Assistance Plan, a CRA must review the posted public record information at least once every 90 days.

Additionally, the CRA will remove if the lien does not provide your name, address, and yur DOB or SSN.

If the state vacates the lien from their public record posting or it does not include the requried name, address, and DOB or SSN, the CRA must remove from your credit report.

 

 

 

Message 3 of 14
Established Member

Re: Possible NC State Tax Lien


medicgrrl wrote:
They will garnish your wages and take your tax refunds if you don't work out a payment plan. As far as credit, I could never find anything where they would vacate the lien, just showed it paid. I never pulled a copy so I'm not sure how it shows up in the public records or whether it meets the new reporting guidelines.

I'm surprised it took them this long to come after you for the amount owed. They're usually much faster about it.


The funny thing is they aren't actually coming after me any differently than usual. I just happened to be checking my credit scores and thought I should look into it before its too late. I should be able to start paying on it within the next 2 months. I'm just worried that they'll take action before I have a chance to start paying on it. Part of me thinks that since they haven't done anything yet after all these years, nothing is going to happen in a month or two, but you never know.

Message 4 of 14
Valued Contributor

Re: Possible NC State Tax Lien


mrboss wrote:

medicgrrl wrote:
They will garnish your wages and take your tax refunds if you don't work out a payment plan. As far as credit, I could never find anything where they would vacate the lien, just showed it paid. I never pulled a copy so I'm not sure how it shows up in the public records or whether it meets the new reporting guidelines.

I'm surprised it took them this long to come after you for the amount owed. They're usually much faster about it.


The funny thing is they aren't actually coming after me any differently than usual. I just happened to be checking my credit scores and thought I should look into it before its too late. I should be able to start paying on it within the next 2 months. I'm just worried that they'll take action before I have a chance to start paying on it. Part of me thinks that since they haven't done anything yet after all these years, nothing is going to happen in a month or two, but you never know.


Listen up!!!

 

They don't come after you for several years because there is a very important reason behind that decision. After 2 years you can no longer deny that you owe that money. The penalties and interest also accrue making more money for them to collect, and collect they will.

 

Do not mess with the Government! Call them and set up a payment plan now!

 

A Government tax lien is the most difficult to repair item on your credit report! Liens can be almost impossible to remove!

 

I am speaking from experience here. I hired a tax attorney to have mine paid and removed and it ONLY took 19 months. The only reason my tax liens were even removed was because they changed the laws. I had 2 State Tax liens that have been on my reports since 2006 and they just dropped off a couple of weeks ago.

 

Don't mess with the Government because they will mess you up!


Starting Score: EQ 653 6/21/12
Current Score: EQ 703 8/5/17 - EX 743 8/5/17 - TU 731 8/5/17
Message 5 of 14
Established Member

Re: Possible NC State Tax Lien

Still not in position to pay the monthly payment. I was thinking maybe I can put the monthly payment on my credit card until I can start paying it out of my bank account. Anyone have any thoughts on going that route?
Message 6 of 14
Established Contributor

Re: Possible NC State Tax Lien


mrboss wrote:
Still not in position to pay the monthly payment. I was thinking maybe I can put the monthly payment on my credit card until I can start paying it out of my bank account. Anyone have any thoughts on going that route?

I was going to recommend this. If it's not easily put on a credit card, take a cash advance from the card and deposit it into your bank account.

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Message 7 of 14
Established Member

Re: Possible NC State Tax Lien

So after reading over some paperwork the NC Dept of Revenue sent me and it basically says that I can contact the credit bureaus to have the Certificate of Tax Liability released after the tax bill is paid. To me this sounds like what NC's verison of a tax lien is and if they issue a lien against me, I can have it removed once paid instead of having to wait 7 yrs. Does this sound correct or is there something else they can put on my credit that would stay on there for years?

Message 8 of 14
Community Leader
Valued Contributor

Re: Possible NC State Tax Lien


mrboss wrote:

So after reading over some paperwork the NC Dept of Revenue sent me and it basically says that I can contact the credit bureaus to have the Certificate of Tax Liability released after the tax bill is paid. To me this sounds like what NC's verison of a tax lien is and if they issue a lien against me, I can have it removed once paid instead of having to wait 7 yrs. Does this sound correct or is there something else they can put on my credit that would stay on there for years?


I do believe a release just indicates it's paid.  Mine stayed on for 7 years and I couldn't find anything about vacating the lien.



EQ 679 EXP 700 TU 763
Message 9 of 14
Valued Contributor

Re: Possible NC State Tax Lien


mrboss wrote:

So after reading over some paperwork the NC Dept of Revenue sent me and it basically says that I can contact the credit bureaus to have the Certificate of Tax Liability released after the tax bill is paid. To me this sounds like what NC's verison of a tax lien is and if they issue a lien against me, I can have it removed once paid instead of having to wait 7 yrs. Does this sound correct or is there something else they can put on my credit that would stay on there for years?


Yeah, you can contact the credit bureaus and ask to have the lien released but you need it REMOVED from your report. Credit bureaus' answer: No!

 

A released tax lien has just as much negative impact on scores as an upaid lien. You will however be able to get a mortgage with a paid tax lien on your reports. Nobody will give you a mortgage with an unpaid tax lien on your reports.

 

Once a tax lien hits your reports they are super difficult to have removed. Each state has their own laws but you generally have to pay the lien off then go to State Court and ask to have the lien withdrawn. They can say no but if you are lucky they will say yes. Once you have the withdrawal documentation you can then send that to the credit bureaus to have it removed.

 

The difficulty with state tax liens is that they don't have guidelines or rules to follow to have the liens withdrawn. This usually entails hiring a tax attorney and they don't come cheap. (Speaking from experience.)


Starting Score: EQ 653 6/21/12
Current Score: EQ 703 8/5/17 - EX 743 8/5/17 - TU 731 8/5/17
Message 10 of 14