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Renoving California State Tax Lien

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odjohnson3
Regular Contributor

Renoving California State Tax Lien

Before i start, id like to say thank you for the abundance of information ive acquired using this website and for all the nice contributers that not only share information but share opinions, options, and experiences..its helped me bring my scores from 489 to 655 and thats bcuz of my terrible credit utilization.

 

I disputed most of my negetive accounts on my own but ran into a problem with this california franchise tax lien. To my surprise i was able to get it removed from equifax but that was it.

 

After a verified dispute in 2013 for experian and trans union.....I turned to Lexington Law Firm and they were able to get it removed from trans Union. I dont think they disputed it with experian amd anyone who knows how they operate...knows they try to drag out the months of ur membership by not disputing items at times. 

 

So on to my question...sorry for the long post 😕

Being that ive paid down the balance of my tax lien can i dispute this account being reported as inaccurate? They are still reporting the original amount of the tax lien and have not updated the entire time the account has been on my report, accept for saying the dispute was verified. 

 

Any help or advice would be very appreciated. Thanks again for all your guys time and attention. Its greatly appreciated

Message 1 of 4
3 REPLIES 3
RobertEG
Legendary Contributor

Re: Renoving California State Tax Lien

The lien represents a claim on the tax debt, and is not required to be updated whenever the debt is reduced.

It is required to be updated once the tax is paid.  It is a record posted by a government agency, and is presumed accurate.

 

There is no party to report updates of what has been paid.  The lien is a pubic record that is verified by way of hte CRA re-checking the posted record to see whether or not the lien has been updated to paid.  Payment of a tx lien only begins the running of its exclusion period of 7 years.

 

Even if you were to dispute and the CRA found the record to be "inaccurate", the required resolution would not be deletion of the lien, it would be correction of the credit report.

Deletion is onlyy mandated if information cannot either be verified or corrected.

 

Message 2 of 4
odjohnson3
Regular Contributor

Re: Renoving California State Tax Lien

Right...i am aware of that. The issue is. The county recorder does not respond to credit bureaus request to update info. Therefore...they would not be able to legally update information because they cannot obtain any from an institution which refuses to respond to their request. And that would mean they are reporting inaccurate info...or at least thats the loophole i was looking to use. Since my understanding of the cra is they are required by law to report "accurate" information. The balance is inaccurate. But if there is an exception to the rule for tax liens then i guess ill have to jus try to dispute directly after the lien is paid and try it that way

Message 3 of 4
RobertEG
Legendary Contributor

Re: Renoving California State Tax Lien

When a tax lien is placed in the public record by the taxing authority, it represents the amount of the asserted tax liability as of the date of recording of the lien.

The amount is not required to be regularly updated by filing of a new lien each time a partial payment is made that does not fully satisfy the lien.

That information, if needed, is separately availble via other taxation authoriyt records.

It is accurate for what it shows.... a lien was placed, the amount of lliability when the lien was placed, and if ultimately satisfied, that additional fact.

 

The txing authority does not report to the CRA, so has no oblitation to update any balance.

The CRA is not posting the lien to show the current amount of indebetness, only the fact that there is an unsatisfied lien.

You can certainly bring civil action if you feel that the CRA has an obligation to also post the current amount of the unpaid tax liability as partial payments are made, but I am not aware of any such regulation.  Even if you prevail, it wont requre deletion of the tax lien itself from the credit report, only its update.The CRA, if forced to take the additonal step of checking a tax authority's additional database of current balance, could still do so, but they currently have no requirment to do so.

 

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