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Removing a State Tax Lien

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Anonymous
Not applicable

Re: Removing a State Tax Lien

Looks like Equifax is the problem child of CRA's.  I received my dispute back today.  They have marked both liens as released now.  But will not remove them.  They verified through Lexis Nexis.  Is that legal?  I asked them to removed it due to incomplete information.  They verified through lexis nexis and closed the case before receiving the mailed information they asked for.  My mailed letter will arrive today.  What is my next step?   I will be ordering a copy of the lexis nexis report. 

 

dispute results.png

Message 21 of 31
Anonymous
Not applicable

Re: Removing a State Tax Lien

Yes, it seems that Equifax is not honoring the Consumer Assistance law at this time.  I wonder if they will comply when it goes into affect next month?

 

It is not illegal to use a 3rd party to access your records, but it can be a basis for removing an item collected in this manner.  At least that is my understanding.  Others here can probably give more expert advice in this area.

 

I'm not sure what recourse we have with Equifax.  My score from them is 35 points lower than TU and EX, which are within a point of each other.  I just was approved for an expensive RV loan and they pulled all 3 scores and then went to a bank that used the highest one (EX) and I was approved for a good rate right away.  Also was approved for 8K card that used the EX score in the last couple of weeks.  So, I think until the 7 year period runs out, you will have to apprise lenders of the inequity in your scores and have them use banks that will pull your best score.  For a mortgage, many lenders will pull all 3 and average them.  However, many use the Beacon 5 score, which is the FICO 5 score for Equifax (according to FICO).  It will really depend upon what you are applying for and which FICO score they use and which FICO model.  

 

As an aside, I lowered my debt ratio to under 10% and added an additional credit card, which brought it down even lower.  My score jumped with EX and TU by 10-15 points immediately.  My EQ score has not budged and it has been 2 weeks, although they too record the new account and the low debt ratio.    Looks like the scoring methodology for EQ weights the tax lien very strongly. TU still shows the lien, but my score with them jumped to within 1 point of the EX score (without the lien) when I lowered my debt ratio.  No other differences on any of the bureaus on what is reported.  Just the tax lien difference.  So, clearly liens matter more to EQ than they do to the other 2 bureaus.  

Message 22 of 31
Anonymous
Not applicable

Re: Removing a State Tax Lien

Scoring seems to be unpredictible...  Experian dropped my public records today.  So now they are only showing on Equifax.

 

My score did not increase with Experian.  It is still 648, my lowest score.  The only negative with Experian are 6 year old collections. 

Equifax won't remove the Public Records and my score with them is 651.  They do not show my collections.  TU is my best score.  742.  No PR or Collections.

 

I am not sure why the PR removal did not help my Experian score.  Before it had 2pr, and 2 collections.  Now just 2 collections (6yrs old).  I will just look forward to later this month when my installment loan and new cap1 start reporting.

 

 

Message 23 of 31
msvee32
New Contributor

Re: Removing a State Tax Lien

I just did this so I am not sure if it works but I came across this information on this form.

 

For others interested, to remove an IRS lien that has been paid, you do the following:

 

  1. fill out IRS form 12277. In box 11 select the last option "best interest of taxpayer and government". In box 12, type "Fresh Start Program" (search irs.gov for form 12277)
  2. https://find.irs.gov/search?utf8=%3F&affiliate=irs-fp&query=removal+of+tax+lien

2) Fax form to phone number for your area as listed in publication 4235. (search IRS.gov for pub 4235)

3) Wait 30-45 days

4) The IRS will file a withdrawal with the court house where the lean was filed and will mail you a copy

5) provide your copy of the withdrawal to the three CRAs to expedite removal 

Message 24 of 31
msvee32
New Contributor

Re: Removing a State Tax Lien

Update. So originally I used the process I posted for VA (I am a VA resident). I was contacted by an employee who verified the program but unfortunately my tax lien was in placed in MD so I needed to follow MD procedures, anyway I decided to disput it. Lucky for me Ex, EQ and TU removed it.
Message 25 of 31
elim
Senior Contributor

Re: Removing a State Tax Lien


@msvee32 wrote:
Update. So originally I used the process I posted for VA (I am a VA resident). I was contacted by an employee who verified the program but unfortunately my tax lien was in placed in MD so I needed to follow MD procedures, anyway I decided to disput it. Lucky for me Ex, EQ and TU removed it.

  Congrats!

 

  and thank you for updating   :]

Message 26 of 31
Anonymous
Not applicable

Re: Removing a State Tax Lien

Hello all!

 

I recently completed an arduous process of getting a state tax lien deleted from all three of my credit scores: Experian, TRansUnion and Equifax. 

 

I use arduous loosely, because having the facts prior to the approach will make your course of action less timely than mine was. 

 

Long story short, I breifly lived in Alabama in 2013 and was unaware that backed state taxes were owed when I moved away. I was notified in March 2016 that a tax lien was placed against me. I immediately paid the lien in full and received documentation from Alabama stating so. 

 

Contrary to federal tax liens, state tax liens have different regulations (typically vary state to state) on whether they can be removd or not. The standard protocol is for the state tax lien to remain on your credit report for seven years.

 

When I submitted proof to Experian that it was paid in full, aloing with a "Request of Goodwill" that outlined my request to have it dleted, they did so immediately.

 

I reached out to the circuit court in Alabama to assist with TransUnion and Equifax, which went no where. After months of repeated documentation faxing and scanning, I finally spoke to someone at TransUnion who laid out the entire process for me. 

 

In order for a credit bureau to delete the state tax lien, a state sealed document (court stamp or official seal somewhere on the document) must state that the tax lien has been "vacated and dismissed". Once this is provided, the credit bureaus have the power to delete the tax lien. 

 

I cold called a host of people at the local court in Alabama where the lien was filed and finally spoke to a staff level person who was willing to help. I typed the letter exactly as the TransUnion associate advised me and the employee stamped the circuit court approval. I faxed this document, along with the proof that Expeian deleted it, to both TransUnion and Equifax. After a 30 day review by each, it was deleted. 

 

This sounds difficult, but should tremendously help now that you know the document must state that the lien has been "vacated and dismissed". This is the most critical piece. Good luck!

Message 27 of 31
Anonymous
Not applicable

Re: Removing a State Tax Lien

This is really great information and congratulations that your persistence paid off!  The problem is that not all states will note it as Vacated and Dismissed.  They will show it as Paid, but not Vacated/Dismissed.  This is the case in Kansas.  The credit bureaus state that they are properly showing the Lien as Paid.  They will not remove it however.  

 

So, sadly, it really is up to the state to decide how they categorize a paid lien as to whether the bureaus will delete.  I had a similar experience in getting it removed from one bureau, but not the other 2.

Message 28 of 31
Anonymous
Not applicable

Re: Removing a State Tax Lien

Is the reporting time 7 years or 10 years? I have a IRS tax lien filed 6/2012 and paid on 7/2012. It's still reporting on TU & EX. I didn't bother disputing it because I assumed it would drop off after 7 years.  

Message 29 of 31
Anonymous
Not applicable

Re: Removing a State Tax Lien


@AnonymousHi I am in the same situation with the state of Alabama was not notified of the debt until a lien was placed against me I immediately paid. It was only reported to transunion the other don't have a report of it thank goodness. How do I get a letter that shows vacated and dismissed to send to them?

wrote:

Hello all!

 

I recently completed an arduous process of getting a state tax lien deleted from all three of my credit scores: Experian, TRansUnion and Equifax. 

 

I use arduous loosely, because having the facts prior to the approach will make your course of action less timely than mine was. 

 

Long story short, I breifly lived in Alabama in 2013 and was unaware that backed state taxes were owed when I moved away. I was notified in March 2016 that a tax lien was placed against me. I immediately paid the lien in full and received documentation from Alabama stating so. 

 

Contrary to federal tax liens, state tax liens have different regulations (typically vary state to state) on whether they can be removd or not. The standard protocol is for the state tax lien to remain on your credit report for seven years.

 

When I submitted proof to Experian that it was paid in full, aloing with a "Request of Goodwill" that outlined my request to have it dleted, they did so immediately.

 

I reached out to the circuit court in Alabama to assist with TransUnion and Equifax, which went no where. After months of repeated documentation faxing and scanning, I finally spoke to someone at TransUnion who laid out the entire process for me. 

 

In order for a credit bureau to delete the state tax lien, a state sealed document (court stamp or official seal somewhere on the document) must state that the tax lien has been "vacated and dismissed". Once this is provided, the credit bureaus have the power to delete the tax lien. 

 

I cold called a host of people at the local court in Alabama where the lien was filed and finally spoke to a staff level person who was willing to help. I typed the letter exactly as the TransUnion associate advised me and the employee stamped the circuit court approval. I faxed this document, along with the proof that Expeian deleted it, to both TransUnion and Equifax. After a 30 day review by each, it was deleted. 

 

This sounds difficult, but should tremendously help now that you know the document must state that the lien has been "vacated and dismissed". This is the most critical piece. Good luck!


 

Message 30 of 31
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