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Tax amnesty + score benefits from paying some liens?

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masscredit
Valued Contributor

Tax amnesty + score benefits from paying some liens?

My state is going to be offering a tax amnesty for two months to try to encourage people to take care of their back taxes -

 

When you don’t pay your taxes in full when they are due, interest and a variety of penalties continue to be assessed until payment in full is received by the DOR. If you qualify for this tax amnesty and pay your taxes and interest in full, the Department will waive all associated penalties. 

 

In the past I've thought that I wish they would just drop all of the interest and penalities. Then I'd have some chance of taking care of what I owe. DOR won't do an OIC and there is no statue of limitations on the time that they can collect so that tax will never go away.  With this offer, I'm considering trying to take care of it. I'd probably see about getting a personal loan through DCU. for $4750.00 at 8% for 4 years then pay it offer early. That would be about $100.00 per month. I currently pay the state $100.00 per month to keep them "happy" and my bill really isn't going down much because of the much higher interest and penalities. Plus, I'd also take care of a small Federal lien.  So that would take care of these three -

 

$92.00 state - EQ, TU, 

$3228.00 state - EQ, TU, EX

 

The above numbers are without penalities and interest. Total with those is curerntly just under $10k. So you can see that there is a significant different and I'd be crazy to not jump on this deal. 

 

Plus I would add in money for -

 

$330.00 IRS - TU, EX

 

So that would be 3 out of 5 liens paid. 

 

And I might add the smaller of the two other IRS liens listed below -

 

$1725.00 IRS - EQ, TU, EX - Collectable for another 5 1/2 years - 

$13700.00 IRS - EQ, TU -Collectable for another 4 1/2 years

 

That would be a total of 4 out of 5 liens paid. So I'd go from having 5 liens to only 1-2. Those are about 5 years old. Plus my BK that is coming on being 5 years old.  

 

Has anyone taken advantage of one of these tax amnesty programs? 

 

Also, do you think my scores will improve by doing the above? 

 

I've tried everything to boost them from where they are now but I just can't. Even have my utiliization down to .002% and that hasn't helped so I think all of these are anchors that are holding me back. 

 

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 687 / TU - 663/ EX - 677

TD Bank - $5000 / Mercury - $5000 / Capital One Savor One- $5000 / SDFCU Secured - $4990 / Capital One QuickSiver - $4500 / Ally Master Card - $2800/ Walmart Mastercard - $2250

Andrews FCU SSL $1500
Message 1 of 4
3 REPLIES 3
CrankyDave
Regular Contributor

Re: Tax amnesty + score benefits from paying some liens?

It took over two months but I finally got a federal lien withdrawn, but I'm still waiting to see any effect on my numbers. This month, hopefully. *fingers crossed*  It looks like I'm stuck with one from Illinois for a whopping $600 for the duration, though, 'cause we don't have a removal method. Still trying to figure out where it came from, since my checkbook says I paid my bill the year in question.

 

Message 2 of 4
masscredit
Valued Contributor

Re: Tax amnesty + score benefits from paying some liens?

Have you questioned them about that? If they cashed the check then you have proof that the taxes were paid. 

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 687 / TU - 663/ EX - 677

TD Bank - $5000 / Mercury - $5000 / Capital One Savor One- $5000 / SDFCU Secured - $4990 / Capital One QuickSiver - $4500 / Ally Master Card - $2800/ Walmart Mastercard - $2250

Andrews FCU SSL $1500
Message 3 of 4
masscredit
Valued Contributor

Re: Tax amnesty + score benefits from paying some liens?

I guess I'll have to recalculate these numbers if I do this -

 

Will DOR waive interest? Interest (other than interest associated with unpaid penalties that are waived) cannot be waived.

 

It will only save about $1950. Still over $3100. in interest applied.

 

 

What if a judgment and/or lien has been filed against me, or my wages are being garnished, because of past due taxes? If you pay the amnesty balance due using the Tax Amnesty Bill Number, any related judgments, liens or garnishments will be released once amnesty is approved.

 

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 687 / TU - 663/ EX - 677

TD Bank - $5000 / Mercury - $5000 / Capital One Savor One- $5000 / SDFCU Secured - $4990 / Capital One QuickSiver - $4500 / Ally Master Card - $2800/ Walmart Mastercard - $2250

Andrews FCU SSL $1500
Message 4 of 4
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