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Established Contributor
Posts: 573
Registered: ‎10-21-2012
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Re: State and Federal Tax Liens


ctaylor09 wrote:

Rules laws vary state to state for liens. I had 2 tax liens owed to my state and it took me 3years to pay them off, just sending in what I could. My state does not allow you to negotiate a lower amount because of financial hardship.

 

I owed the IRS $8000 and I applief for an Offer in Compromise and was allowed to settle and pay my debt for $875. I had to pay $175 for 5 months and if i defaulted I would have had to pay the full amount.

 

You should contact the IRS to see if you can negotaite a smaller amount.

--------------------------------------------------------

 

When a tax lien is filed the state or feds can take your tax return or take money from your bank account or seize other assets....it's best to try to work out a payment arrangement to avoid any drama.


+1  THIS

 

They can garnish your paycheck and/or clean out your bank accounts at any time with ZERO notice.  I would encourage you to contact the IRS about an OIC.   I would also suggest  you to go through a tax professional.  One of the first things they'll ask you when you call is for your bank info. You obviously can't/shouldn't lie about it and they will use it to clean you out. (Even if you don't tell them they'll still find your bank accounts...asking just makes the job easier.)  You can get around that by having someone else negotiate on your behalf.  (You'll have to give it out as part of the OIC information but at least once you are working with them it's not likely they'll take that kind of action against you.)

 

 Find out if your state has a similar program.  The states can be worse than the IRS.  The CA Franchise Tax Board makes the IRS look like Girl Scouts.

 

Good luck!  :smileyhappy:



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Regular Contributor
Posts: 136
Registered: ‎05-13-2011
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Re: State and Federal Tax Liens

From my experience unless they are released "paid" even if they aged it will be extremely hard to get anything. Unpaid tax liens do come off your reports so aging doesn't really matter. Before I got my car loan they said I would have have it released or pay half down. Unpaid public records of judgments will allow them to come after anything you get and they can pull your CR and tell what your doing. Ive been cleaning up my credit and now have ever JDB after me from years ago threatening to ruin my credit again. But I know my right and tell them to shove it the legal way. BTW my lien was filed in error so for the 14 months is was on my credit report I learned the  hard way how the affect you. I got approved for all store cards will 300 limits and capital one cards but suprisingly also chase Amazon visa with 1000 limit. So the ftb has 30 to take it off my CR and my credit life will start over again. But the slap on the wrist helped me understand.... Sorry for the long response




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Valued Contributor
Posts: 1,071
Registered: ‎07-17-2012
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Re: State and Federal Tax Liens

I received a letter from the IRS stating that they are suspending any collection activity for now.  That might resume in the future if my financial situation improves.  I'm also working with MA DOR to do the same thing.  With that, I'm actually renewing the one from last year.

 

I wish I had extra money to do an OIC and take care of those but I can't at this time. 


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Established Contributor
Posts: 812
Registered: ‎05-05-2010
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Re: State and Federal Tax Liens


masscredit wrote:

I received a letter from the IRS stating that they are suspending any collection activity for now.  That might resume in the future if my financial situation improves.  I'm also working with MA DOR to do the same thing.  With that, I'm actually renewing the one from last year.

 

I wish I had extra money to do an OIC and take care of those but I can't at this time. 


You really dont need money to do an OIC. If you can afford a tax professional, then I would go ahead and apply for OIC. Its not hard, just alot of paperwork.

 

 

Valued Contributor
Posts: 1,071
Registered: ‎07-17-2012
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Re: State and Federal Tax Liens

Update - I ended up hiring an accountant to help me with this. One, because they have a greater knowledge taking care of stuff like this than I do and two, I was starting to get a little hot and might have said/did something that would have got me into trouble.  It was better for me not to have contact with those people.

 

First there was the IRS for past business taxes. An agent left a letter and his card on the door of my house. I was surprized by that. It was just before they were out of work for a few weeks. I left him a message to touch base so he got it when he returned. The accountant ended up getting this listed as uncollectable for now so they won't be pursuing me for awhile. I'm considering doing an OIC to wipe out all of my IRS debt. That will be next year. $1k might be able to get rid of about $35k.

 

Then there was my state's DOR. Financials that I submitted showed that I didn't have any extra money to pay them but they still wanted about $400. per month. This was going to have a bad outcome because their office is only an hour from my house. They even wanted to pull my license and registration. I guess they thought I'd forget how to drive and my car would forget how to start if they did that. Well, after the accountant went back and forth with them a little, he got that down to $100. per month. I guess I'll figure out how to do that. Maybe my kids and I will just eat less.  I found links that said I could try an OIC but the accountant, who is pretty good at doing those, said that it's very hard to get one to go through with DOR. The IRS is good to work with but for DOR, you have to be close to dead for them to consider letting one go through. 

 

I guess I'm going to have another tax lien listed. I have 4 plus a BK so I don't think that will hurt my scores to much. Should just blend in with the others. 


|****$8000****|****$8000*****|****$6000*****|****$2500****|****$1600****|****$3000*****|*****$3000*****|****$2500*****|
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Valued Contributor
Posts: 1,307
Registered: ‎09-30-2013
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Re: State and Federal Tax Liens

Want a laugh?  Your scores are still better than mine...I got my liens removed this summer and thought I would see this huge score jump. Not so much....LOL

 

Keep up the good work, and please, don't starve the children :smileyhappy:  You can only pay what you have...period.  A friend of mine and I both owed around  $30k in taxes; she filed BK last year and guess what? Her tax debt is gone. I never filed because my largest debts were all federal (student loans and taxes) and I thought I read somewhere that they would be excluded from BK.  Her CS is also higher than mine and she didn't pay a penny of the taxes they claim she owed. 

 

So, keep talking to your accountant...and stay up beat. You will get through this!!!!! 



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Contributor
Posts: 147
Registered: ‎11-28-2012
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Re: State and Federal Tax Liens

When I filed my bk over 2 yrs ago, I had federal tax debt, and only a portion of it wound up being discharged due to the date of when the debt came in place.

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Valued Contributor
Posts: 1,071
Registered: ‎07-17-2012
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Re: State and Federal Tax Liens

I filed for BK in 2009 and was told that taxes couldn't be included. I forget the details but I later read that at least some could. It was to late then. 


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