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Established Contributor
BluePoodle
Posts: 711
Registered: ‎05-15-2013

State Tax Lien - Updated

[ Edited ]

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?

"


EX 690 | EQ 690 | TU 695 July 2014 - Entering the Garden 5/18/14
Frequent Contributor
OhioCPA
Posts: 447
Registered: ‎03-29-2011

Re: State Tax Lien Question???

[ Edited ]

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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Established Contributor
BluePoodle
Posts: 711
Registered: ‎05-15-2013

Re: State Tax Lien Question???


BluePoodle wrote:

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?

"


Well this is one of my OLD threads. But I thought I would update...I am requesting a Certificate of Withdrawal of the State Tax Lien.  I never received a Notice of Intent to Assess, nor did I receive a Letter of Inquiry. I have paid it but I am of course mad that it is on my CR when I was not even aware of it. Now I am stuck with if until 2020 unless I can get the withdrawal granted.  They have their money, so here is hoping that they will! I will update when/if I hear anything!


EX 690 | EQ 690 | TU 695 July 2014 - Entering the Garden 5/18/14
Established Contributor
BluePoodle
Posts: 711
Registered: ‎05-15-2013

Re: State Tax Lien Question???

[ Edited ]

OhioCPA wrote:

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.


You bring up some excellent points. And now that I am back in MI and able to find my original documents I have learned that 

My Taxes were filed April 15th, 2006. The Initial Filing Date with county court was 10/30/12. The Date of Lien Notice was Issued 10/18/2012. The Deputy Treasurer signed the Notice of Tax Lien on 6/10/13.  All three of these dates are beyond the 6 year statute of limitations court filing date.  

 

I have submitted my letter and I feel I paid after they could even legally seek the $ or file the Lien.  We shall see!


EX 690 | EQ 690 | TU 695 July 2014 - Entering the Garden 5/18/14
Established Contributor
BluePoodle
Posts: 711
Registered: ‎05-15-2013

Re: State Tax Lien Question???


BluePoodle wrote:

OhioCPA wrote:

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.


You bring up some excellent points. And now that I am back in MI and able to find my original documents I have learned that 

My Taxes were filed April 15th, 2006. The Initial Filing Date with county court was 10/30/12. The Date of Lien Notice was Issued 10/18/2012. The Deputy Treasurer signed the Notice of Tax Lien on 6/10/13.  All three of these dates are beyond the 6 year statute of limitations court filing date.  

 

I have submitted my letter and I feel I paid after they could even legally seek the $ or file the Lien.  We shall see!


I thought I would update what I have learned about my state of Michigan Tax lien.

 

I have learned the Statute of Limitations is 4 years from the time of filing your state of MI taxes. But once they determine that you owe taxes that triggers another 6 years that that they can persue legal actions.  If you never filed your taxes but you were supposed to, then those limitations do nol apply to you. I am note sure what is the trigger date as of yet for that 6 years. There were various letters that were required to be sent prior to that, of which I have only received 1 but there were two others that were required that I never did receive. So I am trying to obtain copies and vary the addresses and manner in which they were sent.  I will be writing yet a 3rd letter to the SOM in regards to this.  

 

I doubt that it will go in my favor based on what I have shared above even though I never received notices that I should have.  I just thought I would share this for others to look at based on their liens, states and tax situations.


EX 690 | EQ 690 | TU 695 July 2014 - Entering the Garden 5/18/14

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