State tax liens paid. When does the 7 year clock start?

[masscredit]

The state that I live in (MA) had a tax amnesty program a few months ago. The Department of Revenue (DOR) waived all associated penalties if the back taxes and interest were paid off during the months of September and October. I took care of my back taxes and saved a few thousand in penalities by doing it.  There were two liens assosciated with those taxes. I still haven't received anything that says they were paid. I've called DOR a nunber of times. They keep telling me that a lot of people took advantge of that program so they are behind in sending out the releases.  It's been 3 months since the program ended so I guess they are very far behind. From what I know, the state liens can't be expunged so they will report for 7 years but be marked as paid.

Does the 7 year clock start on the date the liens were paid, at the end of the Amnesty period (Oct 31st) or... when they finally get around to releasing them?

btw- I'll probably still try to get the liens expunged from my reports. It might not work but I'll try. 

Thanks!

[gdale6]

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@masscredit wrote:

The state that I live in (MA) had a tax amnesty program a few months ago. The Department of Revenue (DOR) waived all associated penalties if the back taxes and interest were paid off during the months of September and October. I took care of my back taxes and saved a few thousand in penalities by doing it.  There were two liens assosciated with those taxes. I still haven't received anything that says they were paid. I've called DOR a nunber of times. They keep telling me that a lot of people took advantge of that program so they are behind in sending out the releases.  It's been 3 months since the program ended so I guess they are very far behind. From what I know, the state liens can't be expunged so they will report for 7 years but be marked as paid.

Does the 7 year clock start on the date the liens were paid, at the end of the Amnesty period (Oct 31st) or... when they finally get around to releasing them?

btw- I'll probably still try to get the liens expunged from my reports. It might not work but I'll try. 

Thanks!

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When they actually release them.

[masscredit]

That's not good!  It's like it posting bail but then they forget to let you out of jail for a few months!   And no, I haven't been in jail

[gdale6]

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@masscredit wrote:

That's not good!  It's like it posting bail but then they forget to let you out of jail for a few months!   And no, I haven't been in jail

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Ya, I know we are all at their mercy on getting things done. You might check MA law to see if they require the department to get these released within 30 days some states I understand have such laws, you might be able to use that if they actually have it on file to get it corrected to the proper time.

[Anonymous]

I had a small ($490) NY lien, it was settled on Feb 6th but didn't show as released until April 1st, which I was informed was due to the processing time (30-45 days after payment received) when I called the tax commission to ask about it. So if MA is anything like that, you may have a few weeks after paid off/process date before the actual release date is set.

[masscredit]

I found this info -

631.1.1. Full Release of Lien

A taxpayer that wants to obtain a full release of a lien must pay the amount shown on the lien plus any additional interest and penalties accrued to the date of payment. If the taxpayer wants an immediate release of the lien, payment must be made by bank check, personal money order, certified check or attorney's Client Fund check. If payment is made with a personal check, the lien will ordinarily not be released until 30 days after the date the payment is credited to the taxpayer's DOR account. If the taxpayer requests an earlier release, a copy of the cancelled check must accompany the request. This delay is necessary to assure that the check has been honored.

Once payment has been received, the Department of Revenue will make every effort to release tax liens by notifying the agencies where they have been recorded. If the taxpayer finds that the lien has not been released, he or she may request a release by contacting:

Chief, Collections Bureau
Massachusetts Department of Revenue
P.O. Box 7021
Boston, MA 02204

For further information, call (617) 887-6400.

The Department of Revenue will record all releases of Massachusetts tax liens unless written instructions to the contrary from the taxpayer are received by the Collections Bureau Chief.

http://www.mass.gov/dor/businesses/help-and-resources/legal-library/administrative-procedures/ap-631...

So from what they have told me each time I've called, they are running behind because a lot of people took advantage of the Amnesty Program. That's not my problem. I paid with money orders so the liens should have been released right away. I was told that I'd have to wait until the end of the Amnesty Program so the latest should have been the next business day after that program ended. That would have been November 3rd. One more thing, it says that they will notify the agencies where the liens are recorded. I've been told that they will send me copies to forward to the credit bureaus.

[gdale6]

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@masscredit wrote:

I found this info -

631.1.1. Full Release of Lien

A taxpayer that wants to obtain a full release of a lien must pay the amount shown on the lien plus any additional interest and penalties accrued to the date of payment. If the taxpayer wants an immediate release of the lien, payment must be made by bank check, personal money order, certified check or attorney's Client Fund check. If payment is made with a personal check, the lien will ordinarily not be released until 30 days after the date the payment is credited to the taxpayer's DOR account. If the taxpayer requests an earlier release, a copy of the cancelled check must accompany the request. This delay is necessary to assure that the check has been honored.

Once payment has been received, the Department of Revenue will make every effort to release tax liens by notifying the agencies where they have been recorded. If the taxpayer finds that the lien has not been released, he or she may request a release by contacting:

Chief, Collections Bureau
Massachusetts Department of Revenue
P.O. Box 7021
Boston, MA 02204

For further information, call (617) 887-6400.

The Department of Revenue will record all releases of Massachusetts tax liens unless written instructions to the contrary from the taxpayer are received by the Collections Bureau Chief.

http://www.mass.gov/dor/businesses/help-and-resources/legal-library/administrative-procedures/ap-631...

So from what they have told me each time I've called, they are running behind because a lot of people took advantage of the Amnesty Program. That's not my problem. I paid with money orders so the liens should have been released right away. I was told that I'd have to wait until the end of the Amnesty Program so the latest should have been the next business day after that program ended. That would have been November 3rd. One more thing, it says that they will notify the agencies where the liens are recorded. I've been told that they will send me copies to forward to the credit bureaus.

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Oh wow, ya some ammunition there. The agencies they notify are not the credit bureaus but the county recorders where they registered the lien.

[masscredit]

I just called Equifax to see what they'd tell me.  Spoke with a person that sounded like she's in a country that is far, far away. I explained the situation. She told me that the clock starts on the date that the lien is paid off. So I guess it's 50/50.  Either on the date that I paid them off or when they finally get around to releasing them. I feel that there isn't anything that I can do to speed up this process. I did my part and paid them. Now I have to wait for DOR to finally release the liens.