Have you had an IRS tax lien reach the SOL?

[masscredit]

I've read a lot about IRS tax liens having a 10 year SOL. Then they become uncollectable. I'm looking for some first hand info from people that have had their liens go that long. What happens? Did the lien(s) fall off of your reports? Did your scores increase? And we're you able to obtain credit that you were denied for because of the lien(s).

I can get approved for credit cards and car loans but personal loans and mortgages aren't an option. I'm mainly trying to plan for a mortgage in the future. 

Thanks! 

[RobertEG]

I would recommend consulting a tax specialist.

While IRS tax liens do have a ten year SOL, it is extendble.  I would not make any general assumptions of non-collectibilbity.

[masscredit]

That might be my best bet. From what I've read in their manual -

5.17.2.2.2 (03-27-2012)
Duration of the Federal Tax Lien

The federal tax lien continues until the liability for the amount assessed is satisfied or becomes unenforceable by reason of lapse of time, i.e., passing of the collection statute expiration date (CSED). IRC § 6322. Generally, after assessment, the Service has ten years to collect the tax liability. IRC § 6502. However, there are some circumstances which may extend or suspend the ten-year collection period.

IRC § 6502 provides for an extension of the collection period in two situations:

The statute of limitations was extended at the same time an installment agreement was entered into. In this case, collection action may be taken until the 89th day after expiration of the installment agreement. IRC § 6502(a)(2)(A).

Note:

The Service only secures extensions on partial payment installment agreements and only in limited situations. See IRM 5.14.2.1.3.

Release of a levy under IRC § 6343 is accompanied by an agreement to extend the statute of limitations to a specific date and that date has not yet passed. IRC § 6502(a)(2)(B); Treas. Reg. § 301.6343-1(b)(2)(ii)(D).

IRC § 6503 provides for the suspension of the collection period in several situations. The more common situations are the following:

Issuance of a statutory notice of deficiency, IRC § 6503(a).

Assets of the taxpayer in control or custody of a court, IRC § 6503(b).

Taxpayer is outside of the United States for a continuous period of at least 6 months, IRC § 6503(c).

An extension exists for the payment of an estate tax, IRC § 6503(d).

A wrongful seizure of property or a wrongful lien on property, IRC § 6503(f).

A taxpayer bankruptcy filing triggering the automatic stay, IRC § 6503(h). Insolvency or Area Counsel can identify whether the automatic stay is in effect for any particular period.

Note:

There are other IRC sections whose provisions result in extensions of the Collection Statute Expiration Date (CSED), including, but not limited to, IRC §§ 6015(e)(2), 6330(e)(1), 6331(i)(5), 6331(k)(3)(B) and 6672(c)(4). See also IRM 5.1.19, Collection Statute Expiration

.

If the United States files suit and reduces the tax claim to judgment, then the collection period does not expire until the judgment has been satisfied. United States v. Overman, 424 F.2d 1142 (9th Cir. 1970); United States v. Hodes, 355 F.2d 746 (2nd Cir. 1966).

State statutes of limitations cannot affect the duration or existence of the federal tax lien. Overman, 424 F.2d at 1147.

I also found -

Department of the Treasury INTERNAL REVENUE SERVICE  Guidelines for Processing Notice of Federal Tax Lien Documents

A federal tax lien usually releases automatically 10 years after a tax is assessed if the statutory period for collection has not been extended and the IRS does not extend the effect of the Notice of Federal Tax Lien by refiling it. When a lien is self-released, the Notice of Federal Tax Lien itself is the release document.

The lien is self-released if:

• the date for refiling has passed, and

• the IRS has not refiled the Notice of Federal Tax Lien.

  Taxpayers should check the column titled “Last Day for Refiling” on the Notice of Federal Tax Lien to determine if the lien is self-released. The IRS recommends that recording offices provide the requestor with a copy of the Notice of Federal Tax Lien and identify the self-releasing language, which is directly under the name and address on the lien document.

Detailed info on the above and more here - https://www.irs.gov/pub/irs-pdf/p1468.pdf

[masscredit]

The date of assessment for my big lien is in November of 2008.  This is for the 2007 tax year. I'm finding that the IRS can possible refile liens so it's becoming more complicated.

I guess I'm looking for info from people that have been "there/done that".  Just so I can hear what their real life experiences were.  I spoke to the guy at my accountant's office that handles these cases a few years ago.  He worked for the IRS for many years. He looked up the dates and told me when they would reach their SOL so I was under the impression that they goto 10 years and that's it. I didn't know they could possible be refiled. I think I should contact him with the knowledge that I gain to see what else he can tell me.

I don't know how much he will know about the credit side of it. Like if they aren't refiled, do they just go away and fall off of the credit reports or would I have to do some work on my side?

[elim]

I have a Lien that includes 2 years of taxes.  05 and 07.  I pay a small amount per month to try and keep them quiet.  Last year after I filed I got a simple questionnaire from the IRS... "Your 2005 taxes are no longer collectible by us,  Check Box A if you would like to still pay them,  Box B if you would not"

I checked box B, sent it snail mail, and they sent a revised bill excluding the 05 taxes. April of next year the rest (10k) will hit the 10 year mark (if all goes well) and I will start the process of getting the lien released. Unsure of how long it will stay on my reports but I'm cool with it if it doesn't affect a mortgage down the road.

keep in touch and i'll let ya know next year, lol    :]

[masscredit]

Thanks for the info! Many people experience tax liens but I don't know if many let them go to the point where they reach the SOL.  It's been hard to get first hand info about that. 

[Anonymous]

I have an expired lien on my credit reports, it reached the SOL in 2012 and wasn't refiled, the lien says "self-released" on it. However, it still shows on my credit reports as of today. Even though it's expired, it has not just fallen off, nor can you have it withdrawn. If I am successful in disputing this off, i will let you know.

[masscredit]

The good thing is your no longer responsible for that money. Does anyone know how banks view something like this when it comes to a mortgage or unsecured loan?  The lien is just there and it's probably costing you some points but it's not enforaceable anymore. 

[elim]

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@Anonymous wrote:
I have an expired lien on my credit reports, it reached the SOL in 2012 and wasn't refiled, the lien says "self-released" on it. However, it still shows on my credit reports as of today. Even though it's expired, it has not just fallen off, nor can you have it withdrawn. If I am successful in disputing this off, i will let you know.

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   When was the lien filed?   I'm hoping 10 years from file date mine will be removed.

[Anonymous]

It was filed 12/15/2008. The IRS waited seven years from assessment just to file it. It's from tax year 2001. So, unless there is another way to remove an expired tax lien, I guess it will finally come off in 12/2018. Shame something past the SOL remains that long. Even though the original debt is from 15 years ago. Lol