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State Tax Lein-Unique Situation Help Needed!

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CreditGrasshoppa
Established Member

State Tax Lein-Unique Situation Help Needed!

Hey all!

I have a state tax lein issue that I could use everyones assistance on.  Sorry in advance for the length!

 

In my youthful ignorance, I neglected to file my 2002 and 2003 state income taxes.  Yeah, I know, super-stupid.  I actually itemized in those years, and was audited on my federal taxes, and ended up owing of course.  I satisfied those obligations many moons ago.  However, in 2009, the state obtained leins for the years that I did not file.  The amounts of the judgements were approximately $2300 and $2200, respectively.  Why so much state tax on a $50k income for those years you ask?  According to the state of Ohio, if a resident does not file, they assess your liability as if you paid NO state tax for those years, as they have no record of what you actually paid. 

 

Fast forward to 2009, I find out about the judgements as a law firm procured by the state begins collecting on them.  I begin making minimum payments.  I attempt to file my taxes for those  years, but unfortunately I had no W2's.  I contacted my employer, who no longer had them as they only had to retain them for 5 years I think.  I called and called everyone I could think of.  Federal government couldd give me print outs of my returns for those years, but they didn't include state tax paid.  They referred me to the SSA, and their printouts included every earning and tax deduction imaginable, yet not the state tax.  I gave up and just kept paying. 

 

So for at least the last 3 years, I have been making payments for anywhere from $50-200 a month.  My payments escalated after I was threatened a year and a half ago that if I didn't reduce the obligation siginifcantly, they would move for garnishment.  My state tax refunds have also been offset for the last four years give or take. Now, we arrive at January of this year.  Every few months or so I get extremely pissed at my healthy $150+ monthly payment and investigate obtaining my state tax paid for the years in question.  Every time before now I have hit the wall, nothing. 

 

This time I happen to stumble upon a fantastic woman at my former company, who was able to dig back into an obscure payroll system and send me a printout of not only everything earned for these years, but everything PAID, including state tax.  She completely ROCKS!  So about a month ago, I was able to finally file my 2002 and 2003 state taxes.  My liability?  $140 or 2002 and $230 for 2003, go figure.  I file, and here I am.

 

The returns have been received and according to the firm handling my account, adjustments are currently posting to the state AG site.  I should see a full adjustment within the next 7-10 days.  Even with late filing penalties, I should be seeing a decent size refund of monies paid above my true obligation.  Yay me, even though I would be happy to just never make another payment again, I'll take it!

 

My question to you is this:  who on earth would I contact about having these leins vacated versus marked as satisfied?  To me, they aren't actually satisfied, as they were for monies that I never actually owed, and never actually paid.  I have called the state and the AG office, and no one seems to know where to direct me?  I know that a satisfied judgement still can reflect on my report for 10 years, and I am anxious for these to go away, they are the last major negative on my report.  Any advice or guidance would be immensely appreciated.  Thanks for taking the time to read!           

Message 1 of 5
4 REPLIES 4
aussiesareforever
Established Contributor

Re: State Tax Lein-Unique Situation Help Needed!

Not sure but congratulations on finding a solution to your problem. I bet that is a big relief!


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Message 2 of 5
FrugalRican
Blogger

Re: State Tax Lein-Unique Situation Help Needed!

I don't know the answers to your questions, but I'm sure you owe that woman some flowers or chocolates at least. lol

Follow my financial journey: http://www.frugalrican.com


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Message 3 of 5
CreditGrasshoppa
Established Member

Re: State Tax Lein-Unique Situation Help Needed!

Thanks you two, huge relief is an understatement.  And, ummmm, DUH, the Edible Arrangement went out the day I filed, I DO have some home trainin, lol.  Anybody else have any ideas, thoughts, theories?  Read tarot cards or consider themselves psychic?  I'm getting a bit desperate here! 

Message 4 of 5
Booner72
Senior Contributor

Re: State Tax Lein-Unique Situation Help Needed!

 Vacating a judgment isn't that difficult - you go to the courthouse, pay the filling fee, and I'm sure the clerk can even give you the form.  Then you make the case to the judge.  IMO, you have grounds for getting them vacated bc they should never have been collected on in the first place, and I think a judge would agree....but then you didn't file, so.......

 

The only way to get a judgment removed from your CR's is to get them vacated, and btw, they only stay 7 years from the date filed.

 

You might need an attorney with some of that refund money.

 

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
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Message 5 of 5
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