05-24-2013 12:41 PM - edited 05-24-2013 12:59 PM
Apparently, back in 2005 there was an error in my taxes which resulted in me owning taxes for the 2005 Tax year with the State of Michigan. I relocated in 2006 out of state and sold my property. Now today, all of the sudden there is a negative hit on my Equifax report that I have a State Tax Lien with the State of Michigan. I would not have even know about it otherwise. I was told that it is from my 2005 taxes. Apparently in 2009 or 2010 (it depends on the person explaining it to me) the error was realized and they attempted to contact me via mail to my old Michigan address. Obviously, I was no longer there and the information was never forwarded. They filed a State Tax Lien in October of 2012.
According to the Michigan Government website:
Under the authority of public act 122 of 1941 as amended, the Collection Division is responsible for the collection of all delinquent state tax accounts for the State of Michigan. The Department may proceed to collect your delinquent tax debt by using several different enforcement methods. The Collection Division can use collection enforcement action for a minimum of 6 years to collect the debt. The 6 year period, known as the statute of limitations, may be extended by certain actions such as a court judgment."
I am trying to understand how they can file a lien in 2012 for 2005 State Taxes. I don't care about the bill, actually I already paid it. What I am upset about it that it is now negatively hurting my credit report and will remain there for 6 or 7 years for the 2012 filing. Will the credit agencies remove it since it is actually from a 2005 debt or am I just out of luck and the state and credit agencies can do whatever they want?
I have written to Equifax and explained the situation. But I am not sure if they will remove it or not. Any thoughts?
05-25-2013 03:25 AM - edited 05-25-2013 03:29 AM
Unless Michigan has a way similar to the IRS to withdraw liens, I think you are stuck.
You likely need to get a lien release from the State of Michigan and file it in the court where the lien was filed. The clock on deletion will start running from the filing of the release.
I assume the six years statute of limitations runs from the date the return was due or filed, whichever is a later date. Thus, if you filed on April 15, 2006, they had until April 15, 2012 to file the lien.
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