Tax lien

[rckstrscott]

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@Anonymous wrote:

I have to disagree about the IRS removing a tax lien once it is paid. My husband and I had a tax lien in 2004, which was paid within 4 weeks of being placed. It is still on our credit report.  

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They have changed their stance in the last year... you are going back to 2004... you should research how to remove an IRS tax lien and you can probably get it removed now..

-scott

[thankfulheart]

If a lien is UNPAID (meaning, the "receipt" paperwork was never filed with the courthouse), it can report forever (or 10 years?)

As far as the IRS, it won't automatically come off. You have to file a form with the IRS, they will send you a withdrawal which you then have to send to the CRAs. It's a new rule and not automatic (that would be too easy, donchaknow).

[Anonymous]

This is helpful information.  Thank you for posting. 

[chally]

As stated earlier, Form 12277. Takes a good 60 days from sending it in to IRS to them responding and CRA removing item. But you have to be current with returns and no outstanding balances.

[gummiebear]

After reading this I decided to call the state office and see if I can pay a fee to have the state remove the information from my credit report. (My state taxes are now paid in full).   The young lady said their office cannot do it but that she did hear of it being done and to call the courthouse. I looks like the court is closed today because it's President's day.  I will call the courthouse tomorrow and see if I can pay to remove the paid tax lien from my credit report.  

Thanks for all the info. I would never have thought to do that. Will post my results. 

[gummiebear]

Hmmm.... the lady at the courthouse told she's never heard of that but I'm thinking someone knows something. Why am I hearing from people that it's been done?  I'll make a note to talk to a different person in the office tomorrow. Maybe I'll call during lunch or something (or see if I can find anything out online).

[Anonymous]

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@Anonymous wrote:

Tax Liens can have a huge impact on your score.  There are several ways to resolve it though.  Recent [02/2011] changes in the IRS Regulations allow for a withdrawl of the lien after fulfilling several requirements.  It is not automatic, you must submit a Form 12277 'Application for Withdrawal of Fled Form 668(Y), Notice of Federal Tax Lien.

Requirements are that you must be current on all returns, have entered in to a payment plan [Form 9465, Installment Agreement Request] and had 3 payments post to your tax liability.  The withdrawal will be approved once these points have been covered.  A letter of withdrawal is sent to you and the county recorders office where the lien was filed.  Once the withdrawal has been filed, the lien can be removed from your credit report by mailing a letter with the notice of withdrawal that will be sent to you by the IRS.

Withdrawal — Removes the public notice and assures that the IRS is not competing with other creditors for your property.

I am currently in the process of doing just this and will touch base when completed in about another 30 days.  It is not a quick process.  To get the payment plan, it took me over 5 months and to get the 3 payments, well another 3 months.

If you have questions about the process, you may contact your Tax Advisory Group menber directly.  To find the Tax Advisory Group contact information, refer to Form 4235 at irs.gov

Good luck,

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Sorry to bring this old thread up but I have 3 tax liens that have been "released" after I did finally file my taxes and they realized I owed no money.... any have exprience with Florida Tax liens? Would they remove it for me?

[Anonymous]

I would like to join in on this. I just paid two state tax liens in Philadelphia and 1 was satisfied a few weeks ago in which I recieved the letter from the Phila prothonatary Office. Apparently I have 1 more state tax lien that's $1,800. that i do not have the funds for presently. Is it possible to have the 3 liens that were paid removed from my CR or would I have to wait until the last one is paid?

I am also in a payment arrangement with federal Income tax and on a payment plan for the last four months. This should be paid in about 12 months.

I am planning on going for a mortgage when my credit score gets up to 620-640. Currently the highest score of the 3 bureaus is 587. By payment the 3 tax liens will this impact my current credit score once the bureaus see that they have been satisfied? 

[Anonymous]

If you can get them removed it would be better. I've seen people jump up about 100~ points after getting them removed. Try your best to do so and refer to IRS Form #12277

Also are these STATE TAX LIENS or Federal Liens? And what kind of taxes did they file the liens for?

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@Rickdoc1 wrote:

I would like to join in on this. I just paid two state tax liens in Philadelphia and 1 was satisfied a few weeks ago in which I recieved the letter from the Phila prothonatary Office. Apparently I have 1 more state tax lien that's $1,800. that i do not have the funds for presently. Is it possible to have the 3 liens that were paid removed from my CR or would I have to wait until the last one is paid?

I am also in a payment arrangement with federal Income tax and on a payment plan for the last four months. This should be paid in about 12 months.

I am planning on going for a mortgage when my credit score gets up to 620-640. Currently the highest score of the 3 bureaus is 587. By payment the 3 tax liens will this impact my current credit score once the bureaus see that they have been satisfied? 

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[Anonymous]

It looks like if its a Federal lien you are elgible for the fresh start program BUT I don't know the difference between a State lien and a Federal lien... im trying to figure mine out right now. Could someone tell us the difference? People seem to say its two different things?