cancel
Showing results for 
Search instead for 
Did you mean: 

Help! PennCredit Collection for state tax.

tag
Onward_
Member

Help! PennCredit Collection for state tax.

Hi,

 

so I've been working on cleaning up my report for the past few months, and was finally able to clear every delinquency except 1 (sallie mae)... and i thought I was finally in the clear, having reach 726 as of last month. Today... a Notice of Collection letter came in from PennCredit regarding State of MD Tax for a whopping $1,900. I've always paid my taxes, both federal and state in a timely manner, and I don't remember owing MD. Here's my situation. I worked in NC from Q2  to Q4 2011, and then started apartment hunting at end of 2011 (I think nov/dec) in MD since my company was being moved there. I went and moved in to the apartment near the very end of 2011 and started to work in the new HQ about two weeks in to 2012, although I was still in the payroll at NC during the transition period. When I filed my taxes, which I had an accountant do, he filed all my taxes, federal and state (NC and KS (worked Q1 2011)). So I didn't think this was going to be an issue... until today apparently. I've logged in to IRS.gov to find copies of my salary and wages for 2011, and I have none recorded for the state of MD, just KS and NC. The Notice of Collection state that the tax period they are trying to collect from me begins on 2011/01/01 - which doesnt make sense to me, especially with such a large state tax amount being collected when I lived in a different state until near the end.

 

Is there something I can do to fight this? I'm not sure where to start. Please help. Thank You. 

 

Also I should note that this collection has not hit my credit reports yet as of today - just checked.

 

update: I've managed to find my Tax Returns from 2011, W2s and Pay stubs, and all of them are accurate in that I lived and worked on KS and NC for the year. Can I use these to proove I don't owe this balance to MD? I didn't get my first pay from MD until beginning of 2012, I have my W2s and pay stubs with dates of service supporting that too. Not sure what to do here. I really don't want this messing up my credit report and creating a snowball effect, which I assume will happen if my credit score drops which may result in my credit card companies dropping my limits due to lower score.

 

 

 

Message 1 of 5
4 REPLIES 4
Shogun
Moderator Emeritus

Re: Help! PennCredit Collection for state tax.

Take that info, make a copy of it and send that in with a 623 direct dispute to the collection company.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 2 of 5
Onward_
Member

Re: Help! PennCredit Collection for state tax.

Thank you. I wrote a formal dispute letter last night, enclosed all the documents including the IRS transcripts, and CCed the Comptroller of Maryland (the client of PennCredit). I will be making copies today and sending it via certified mail tomorrow, and hopefully this all goes away quickly before it can do some damage.

Message 3 of 5
Onward_
Member

Re: Help! PennCredit Collection for state tax.

Just wanted to update that the comptroller has closed the issue for me after they have verified that I do not owe them money. Now I can go back to going up in my score! I was really worried this thing was going to hit my report hard. 

 

Anyways,

Thanks!

Message 4 of 5
d170
Regular Contributor

Re: Help! PennCredit Collection for state tax.

Glad you got it figured out so quickly. 


Time to Garden!!
EQ 703 TU 752 EX 711 as of 07/19/2014. In the garden until 01/19/2015. Baby steps, baby steps!! Trying for 750 ACROSS THE BOARD.
Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.