Tax Lien on my CR? WTH????

[havlow]

Allright I ran my FICO scores today and was actually surprised that they were as high as the were (619 and 633 from TU and EX) and was looking over the information that hurting me and noticed that it listed that I had a tax lien filed against me.  A few years ago the State I live in said that I had not paid my taxes but I called them up, they told me to file the taxes again and it shouldn't be any problem.  In fact I received a letter from them stating that my tax burden from that year had been satisfied.  Now I run my report and find that a lien has been put against me?  I just called the Dept Of Revenue and left a voice mail with someone in that department, but I'm hoping it's something I can get taken care of soon!

Has anyone had this happen to them?  How badly does it affect your report?  Aside from some high CC Utilization my CR is really good.  No lates, no charge offs, just high Utilization on my CC's and this darn tax lien!

Also if they dispute this...will the letter they sent me saying that I've satisfied the debt be enough to have it removed from the CR's?

Any help would be greatly appreciated!  Thanks!

[BungalowMo]

I'm sure sorting this issue out with your Dep of Rev will clear it up, especially since you have the doc to prove it.  They can then contact the CRAs for removal.

It's a PITA, but at least you know it's a mistake/oversight.

[havlow]

****Update*****

Well I just spoke to someone at the DOR for the state and found out some things:

1.  It was misfiled under an incorrect file number

2.  It was never sent to the courthouse to be removed

3.  They lady that misfiled it was apparently fired a week after it happened

So they said they would take care of this, send me a copy of the release letter as well as send the release to the courthouse.  Does this mean it will fall of my CR now or do I need to send a letter to the three agencies requesting it's removal?

Also...does anyone have any idea how much this might increase my FICO score once it's removed?

[havlow]

All,

I just received a letter today from the DOR.  Inside was a letter stating that they had canceled my lien and another requesting the courthouse to do the same. 

Do I send a copy of both of these letters to the CRA's or just the one addressed to me?

Thanks again for your help!

Jeremy

[Anonymous]

I would give it time for the courthouse to get the letter and act on it, then I would dispute with the CRA as "lien was cancelled and should be removed".

I wouldn't send anything to the CRA just yet.

[havlow]

Thanks for the reply and the advice.  I know I need to give it time...just frustrating that it happened.  I am on the other extremely please with the DOR's handling of the situation after the realized that mistake.  I'm just happy I'm making the progress.

[RobertEG]

I would focus on the legal terminology.

When you say the lien was "cancelled," what specifically do you mean?

Is the court vacating the original judgment, or is the lien just being recorded as paid and satisfied?

Civil judgments, unless vacated by the court, and paid tax liens remain for 7 years from date paid.

The state revenue dept. cant vacate a court order, they can only report the lien as satisfied.  Satisfying a lien does not remove it from your CR  See FCRA 605(a)(3).

[Anonymous]

This is a tax lien, not a civil judgment.

Judgments are vacated by the court.

From my understanding, the authority that placed the tax lien has the right to cancel it.

Liens and judgments are handled differently.

[havlow]

Here is the terminology from the two enclosed letters.

The letter to the courthouse states:

 

"Please relase the the Certificate of Tax Liability filed against the above named taxpayer, docketed on 9/17/2004, file number xxxxxxxx"

 

The letter to me states:

 

"This is to advise you that the Certificate of Tax Liability which was recorded at the Clerk of Court's office in xxxxxxxxx on xxxxxxxx has been canceled on this date, xxxxxxxx"

As I mentioned in the post above, I was never EVER liable nor did I ever pay in of the Lien as all I had to do was refile my tax return in order to prove that I didn't owe the money, which I did and received a letter at that time.  Essentially the crux of the problem was a filing error between the DOR and the court.  My hope is that this action will remove that item from my CR as it was an error on their end.

[RobertEG]

The court letter holds the important legal phaseology.  Release of the lien simply means it was paid.  But the court said it was to be "cancelled."  Thus, it should be removed from the CR.