If I'm not mistaken, Tax Liens and Bankruptcies are a couple of the big 'baddies' at the CRAs. They look at people's credit with those two types of public records differently than they do those without. Once you have them removed, they look at your credit as if you never had the BKYs and Liens on your credit, so your other credit will affect the outcome of the credit score.
I'm not looking forward to Feb when I have both a Ch7 and a state lien fall off mine.
Hello friends,
This seems to be the most appropriate section to seek advice. I failed to file my taxes for 2009, 2010, 2011 and 2012. In December 2011 the California FTB placed a lien on me for back taxes. The CA FTB levied my bank account based off of the income they estimated I made which was in excess of what I made and owed. After filing my taxes for these years they applied the exact amount of overages levied as "penalties, fees and interest" and claim I still owe them an additional $41 for one of those years. Once I pay the $41 I'll be requesting a letter detailing their accounting to see if their amounts of "penalties, fees and interest" are accurate.
I see on the CA FTB website that I can have the lien "released" after I am current with them. Does anyone here have any advice or experience with having the California FTB withdraw a tax lien in good will? Can or has a withdrawal like this happened before under these circumstances? If so, what do I need to do to accomplish this?
Thank you in advance!
Starting Fico Score: 579 TU, FICO 8/15/13
@Credit_Apprentice wrote:Hello friends,
This seems to be the most appropriate section to seek advice. I failed to file my taxes for 2009, 2010, 2011 and 2012. In December 2011 the California FTB placed a lien on me for back taxes. The CA FTB levied my bank account based off of the income they estimated I made which was in excess of what I made and owed. After filing my taxes for these years they applied the exact amount of overages levied as "penalties, fees and interest" and claim I still owe them an additional $41 for one of those years. Once I pay the $41 I'll be requesting a letter detailing their accounting to see if their amounts of "penalties, fees and interest" are accurate.
I see on the CA FTB website that I can have the lien "released" after I am current with them. Does anyone here have any advice or experience with having the California FTB withdraw a tax lien in good will? Can or has a withdrawal like this happened before under these circumstances? If so, what do I need to do to accomplish this?
Thank you in advance!
Hey Credit_Apprentice,
I am in the same boat as you,just sent a check in last week to pay off my 2008 and 2009 CA FTB liens. Also wondering what the next step will be and if anyone else has gone through it.
Hi mmmlive1999,
Here's an update from my situation: The FTB just filed my lien as "Released" with my counties clerk recorders office. I asked for what is called a "Tax Computation" for the years they levied me for. They levied me in excess of what I owed and just assigned the overages as "penalties and fees". Once I receive the tax Computations I'll check to see if their accounting is correct.
In addition I asked the FTB rep if she had ever heard of a satisfied and released lien being re-filed with a withdrawal letter to the county. She almost started laughing and said no. She said the only way they are supposed to withdrawal a lien is if it is in error, that if the lien is legitimate then they will not withdrawal it. I asked her if a goodwill letter might help my case and she said I could try, but she doubts I have any chance unless I can show it was in error.
I just called the lien desk at the CA Taxpayers' Rights Advocate at (916) 845-4350. The lady reviewed my account and confirmed the lien was valid and therefore cannot be removed or withdrawn. She said the CA FTB wil only remove the record of a lien it was done in error and there are no exceptions and I will have to wait 7 years for it to be removed.
If anyone has any experience removing a valid CA tax lien by means of goodwill or other process please let me know. Thank you!!
@mmmlive1999 wrote:
@Credit_Apprentice wrote:Hello friends,
This seems to be the most appropriate section to seek advice. I failed to file my taxes for 2009, 2010, 2011 and 2012. In December 2011 the California FTB placed a lien on me for back taxes. The CA FTB levied my bank account based off of the income they estimated I made which was in excess of what I made and owed. After filing my taxes for these years they applied the exact amount of overages levied as "penalties, fees and interest" and claim I still owe them an additional $41 for one of those years. Once I pay the $41 I'll be requesting a letter detailing their accounting to see if their amounts of "penalties, fees and interest" are accurate.
I see on the CA FTB website that I can have the lien "released" after I am current with them. Does anyone here have any advice or experience with having the California FTB withdraw a tax lien in good will? Can or has a withdrawal like this happened before under these circumstances? If so, what do I need to do to accomplish this?
Thank you in advance!
Hey Credit_Apprentice,
I am in the same boat as you,just sent a check in last week to pay off my 2008 and 2009 CA FTB liens. Also wondering what the next step will be and if anyone else has gone through it.
California does not withdraw tax liens. Only release which doesn't help your credit. There was some bill that was proposed to do something similar to IRS, but not sure what happened to it. I would do a google search on it.
LIMITS IN CARD DESCRIPTIONS
Hello Electra,
I was so devastated by the results of my disputes...I neeed to walk away for a while. Here is what happened:
1. I had a Fed tax lien and a state tax lien.
2. Neither of them were valid both agencies actually owed me after I submitted my documentation.
3. The IRS "released" the lien and the release was showing on all 3.
4. Submitted the form #1227 (or something like that) to get a withdrawn from IRS. Successful in getting that done all agencies delete IRS lien except Equifax. FAKO score is 698 Eq Fico is 662
5. Calling and writing letters to equifax meanwhile also working on withdrawal of state lien...State would only "release" even after they knew I never owed any money.
April 2013 almost a year after IRS withdrew lien. Equifax finally deleted information about Fed tax lien. They also deleted 2 charge offs that I had disputed for the last 7 years (yes the time was finally up).
6. The Fako score dropped from 698 to 659. The Fico did not change at all. I called and asked for an explanation of the score drop and they said it was a computer algorythm no one knew why.
Meanwhile, in the irs lien's place is now 2 state liens. An additional ghost lien complete with a book and page number. After I went to the courthouse to view the extra lien. It is discovered one is the original lien's book and page number and the other document is actually the release of the lien but Equifax and only Equifax showed it as a new lien! The score at this time is constantly dropping almost a point a day. It goes down to 639 while the FICO is pretty much the same and all other reports are steady. Thats when I found Equifax had put the IRS tax lien back on the report......
I called them again and asked that they delete the withdrawn lien again. The person I reached was nice enough to delete the same lien again. She also took off the extra ghost lien after I faxed copies of the court docs.
My score bumped up 3 months later to 654 still significantly lower than before the lien removals.
I know about the credit card limits...mine are usually zero balance or 25% utilization or below. I still dont know why my score is as low as it is today.
The only comfort Im getting with my scores is that the FICO score actually came up a bit to 672 it is currently at 660 the fako score is up to 680 but thats many months after removing liens. Still less than what it was with the liens on the report.
The good news ...the state has promised to withdraw their lien. I will believe it when I see it.....
@stillrise,
Don't give up after doing so much work. Getting public records removed is such a long process. I had one fed tax lien, state tax lien, and a judgement.
Federal Tax Lien
The IRS lien was totally my fault. Filed in 2008 and I finally paid it this summer, I paid in the local office they gave me the release the next day and sent the 12227 within a week. I was shocked when it was approved and sent back to me in less than a month (right before the shut down luckily). Equifax took the longest to remove it. It seemed like EX and TU removed it before I got the withdrawal form back.
State Tax Lien (MD)
The lien was filed in June 2012 based on a return that the state of MD filed because I didn't file. They claimed I owed over $3500 and I didn't know because I didn't live in MD anymore.....when I saw it on my CR, I had to re-file a 2006 MD part resident return and the tax due was $80, they didn't give me credit for my witholding because it was longer than 3 years, and they tacked on another $300 in late fees and penalties. I paid $425 and they released it that day....the withdrawl was HARD work. I contacted them and they said they wouldn' t be able to remove the lien from my CR. I contacted the state comptroller's office via e-mail and received a withdrawal within a week...and it was removed from all three reports within another two weeks.
I am working on getting a judgement "set aside". I go to court tomorrow to file the motion (fingers crossed). It seems like the clerk of the court should be helping you more....especially since the liens weren't supposed to be there anyway. Keep up the good work, you are so not alone!
012019 Fico8/Mortgage Score: 
