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DW tax lien removed....

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Anonymous
Not applicable

Re: DW tax lien removed....

Score just updated...went up two measly point..didn't say anything about tax lien being removed, just balance decrease....I think IMHO, if you can't remove all old baddie, then just let then age off... Removing them sometime dont help if your have good payment and credit record. DW REPORT has no missed payment , great aaoa, and excellent mix of credit. Never denied any credit that she applied for in recent 3 year, before that they just question her on the lien and medical collection, but never denied.
So if you have good payment history , credit score in the high 600's low 700's, just let the old baddies age off. Don't bother , the effect have wear off, but only when they are all removed can you jump to the high 700's... JUST MY OPINION.

Message 31 of 41
Revelate
Moderator Emeritus

Re: DW tax lien removed....


@Anonymous wrote:

Score just updated...went up two measly point..didn't say anything about tax lien being removed, just balance decrease....I think IMHO, if you can't remove all old baddie, then just let then age off... Removing them sometime dont help if your have good payment and credit record. DW REPORT has no missed payment , great aaoa, and excellent mix of credit. Never denied any credit that she applied for in recent 3 year, before that they just question her on the lien and medical collection, but never denied.
So if you have good payment history , credit score in the high 600's low 700's, just let the old baddies age off. Don't bother , the effect have wear off, but only when they are all removed can you jump to the high 700's... JUST MY OPINION.


Score is only half (if that) of the equation when it comes to being approved for virtually anything credit-related.  

 

A slew of derogatories will have analysts and underwriters potentially run screaming (unless you're applying at my now-again employer but I digress); just because the scores may not reflect it, in many cases a human will review one's file, and there's a world of difference between paid and unpaid tax liens and collections certainly, and the sheer volume of them is another issue.




        
Message 32 of 41
6speed8
Regular Contributor

Re: DW tax lien removed....


@Anonymous wrote:

Score just updated...went up two measly point..didn't say anything about tax lien being removed, just balance decrease....I think IMHO, if you can't remove all old baddie, then just let then age off... Removing them sometime dont help if your have good payment and credit record. DW REPORT has no missed payment , great aaoa, and excellent mix of credit. Never denied any credit that she applied for in recent 3 year, before that they just question her on the lien and medical collection, but never denied.
So if you have good payment history , credit score in the high 600's low 700's, just let the old baddies age off. Don't bother , the effect have wear off, but only when they are all removed can you jump to the high 700's... JUST MY OPINION.


The problem with that when it comes to a federal tax lien anyway, is how long it can stay in place. Partially using what I went through as an example, say you had a $50,000 lien - or whatever amount, and got the IRS to at least deem you "uncollectible" due to your income. Even if they do that, the lien will stay in place for 10 years. Legally they can do that even if they deem you uncollectible. Last resort option, or to just speed the process to get them out of your hair, is an Offer In Compromise. Even if they settle for $100 on that "$50,000 lien," once your Offer is accepted and paid, they remove the lien. No 10 years.

CH 7 Discharged 6/10/15
T/U - 643
EQ - 588
Ex - 647 as of 6/14/15
Message 33 of 41
Revelate
Moderator Emeritus

Re: DW tax lien removed....


@6speed8 wrote:

@Anonymous wrote:

Score just updated...went up two measly point..didn't say anything about tax lien being removed, just balance decrease....I think IMHO, if you can't remove all old baddie, then just let then age off... Removing them sometime dont help if your have good payment and credit record. DW REPORT has no missed payment , great aaoa, and excellent mix of credit. Never denied any credit that she applied for in recent 3 year, before that they just question her on the lien and medical collection, but never denied.
So if you have good payment history , credit score in the high 600's low 700's, just let the old baddies age off. Don't bother , the effect have wear off, but only when they are all removed can you jump to the high 700's... JUST MY OPINION.


The problem with that when it comes to a federal tax lien anyway, is how long it can stay in place. Partially using what I went through as an example, say you had a $50,000 lien - or whatever amount, and got the IRS to at least deem you "uncollectible" due to your income. Even if they do that, the lien will stay in place for 10 years. Legally they can do that even if they deem you uncollectible. Last resort option, or to just speed the process to get them out of your hair, is an Offer In Compromise. Even if they settle for $100 on that "$50,000 lien," once your Offer is accepted and paid, they remove the lien. No 10 years.


Being placed in an uncollectible status doesn't write off the lien, it simply stops the constant spam of letters and occasionally phone calls,  but it doesn't extend the SOL either.

 

I had one lien slip in and out of collectible/uncollectible status several times over the course of a decade - basically there's some tracking on tax returns and if you aren't making any money, there's nothing to go after as near as I could determine.

 

You are right though, you pay it, or settle with an OIC, a status of released can pretty much get a rubber stamp on removal in "best interests of the taxpayer" on a Withdrawl Form.  The OIC's of $100 though are mostly scams, there's an explicit calculation that has to be done (looks suspiciously like a bankruptcy worksheet I might add heh) on how much the IRS can reasonably expect to get over the remaining time (based on SOL) of the lien.

 

 

 




        
Message 34 of 41
6speed8
Regular Contributor

Re: DW tax lien removed....


@Revelate wrote:

@6speed8 wrote:

@Anonymous wrote:

Score just updated...went up two measly point..didn't say anything about tax lien being removed, just balance decrease....I think IMHO, if you can't remove all old baddie, then just let then age off... Removing them sometime dont help if your have good payment and credit record. DW REPORT has no missed payment , great aaoa, and excellent mix of credit. Never denied any credit that she applied for in recent 3 year, before that they just question her on the lien and medical collection, but never denied.
So if you have good payment history , credit score in the high 600's low 700's, just let the old baddies age off. Don't bother , the effect have wear off, but only when they are all removed can you jump to the high 700's... JUST MY OPINION.


The problem with that when it comes to a federal tax lien anyway, is how long it can stay in place. Partially using what I went through as an example, say you had a $50,000 lien - or whatever amount, and got the IRS to at least deem you "uncollectible" due to your income. Even if they do that, the lien will stay in place for 10 years. Legally they can do that even if they deem you uncollectible. Last resort option, or to just speed the process to get them out of your hair, is an Offer In Compromise. Even if they settle for $100 on that "$50,000 lien," once your Offer is accepted and paid, they remove the lien. No 10 years.


Being placed in an uncollectible status doesn't write off the lien, it simply stops the constant spam of letters and occasionally phone calls,  but it doesn't extend the SOL either.

 

I had one lien slip in and out of collectible/uncollectible status several times over the course of a decade - basically there's some tracking on tax returns and if you aren't making any money, there's nothing to go after as near as I could determine.

 

You are right though, you pay it, or settle with an OIC, a status of released can pretty much get a rubber stamp on removal in "best interests of the taxpayer" on a Withdrawl Form.  The OIC's of $100 though are mostly scams, there's an explicit calculation that has to be done (looks suspiciously like a bankruptcy worksheet I might add heh) on how much the IRS can reasonably expect to get over the remaining time (based on SOL) of the lien.

 

 

 


Yes definately, uncollectible doesn't end it. You are required to file tax returns if for whatever reason you don't. You will not receive any refunds if you are entitled,etc. And I know the worksheet well lol. The "fortunate" thing about the worksheet is like you said, pretty much a rubber stamp if the numbers jive. They have to accept it. It's not opinion-based or denied because they heard you wear funny purple hats on Fridays lol.

CH 7 Discharged 6/10/15
T/U - 643
EQ - 588
Ex - 647 as of 6/14/15
Message 35 of 41
Revelate
Moderator Emeritus

Re: DW tax lien removed....


@6speed8 wrote:

@Revelate wrote:

@6speed8 wrote:

@Anonymous wrote:

Score just updated...went up two measly point..didn't say anything about tax lien being removed, just balance decrease....I think IMHO, if you can't remove all old baddie, then just let then age off... Removing them sometime dont help if your have good payment and credit record. DW REPORT has no missed payment , great aaoa, and excellent mix of credit. Never denied any credit that she applied for in recent 3 year, before that they just question her on the lien and medical collection, but never denied.
So if you have good payment history , credit score in the high 600's low 700's, just let the old baddies age off. Don't bother , the effect have wear off, but only when they are all removed can you jump to the high 700's... JUST MY OPINION.


The problem with that when it comes to a federal tax lien anyway, is how long it can stay in place. Partially using what I went through as an example, say you had a $50,000 lien - or whatever amount, and got the IRS to at least deem you "uncollectible" due to your income. Even if they do that, the lien will stay in place for 10 years. Legally they can do that even if they deem you uncollectible. Last resort option, or to just speed the process to get them out of your hair, is an Offer In Compromise. Even if they settle for $100 on that "$50,000 lien," once your Offer is accepted and paid, they remove the lien. No 10 years.


Being placed in an uncollectible status doesn't write off the lien, it simply stops the constant spam of letters and occasionally phone calls,  but it doesn't extend the SOL either.

 

I had one lien slip in and out of collectible/uncollectible status several times over the course of a decade - basically there's some tracking on tax returns and if you aren't making any money, there's nothing to go after as near as I could determine.

 

You are right though, you pay it, or settle with an OIC, a status of released can pretty much get a rubber stamp on removal in "best interests of the taxpayer" on a Withdrawl Form.  The OIC's of $100 though are mostly scams, there's an explicit calculation that has to be done (looks suspiciously like a bankruptcy worksheet I might add heh) on how much the IRS can reasonably expect to get over the remaining time (based on SOL) of the lien.

 

 

 


Yes definately, uncollectible doesn't end it. You are required to file tax returns if for whatever reason you don't. You will not receive any refunds if you are entitled,etc. And I know the worksheet well lol. The "fortunate" thing about the worksheet is like you said, pretty much a rubber stamp if the numbers jive. They have to accept it. It's not opinion-based or denied because they heard you wear funny purple hats on Fridays lol.


Nah, there'd be no such thing as people filing CH 13 BK's over Federal Tax liens if the IRS was always reasonable in accepting it Smiley Happy  Vast majority of OIC's are turned down actually.

 

Basically a CH 13 is the way to force an installment agreement on the IRS if you can't get it done via negotiation with them directly.




        
Message 36 of 41
Anonymous
Not applicable

Re: DW tax lien removed....

I'm going through the IRS lien thing too. It's haunted me for over 25 years. I have a notebook where I've noted every contact I've had with the IRS and got nowhere. 263 phone calls. Never got even one tax return.
I've paid over $123,000 on an original tax bill of $45,000. I got it down to about $15,000 and hit a stalemate. Whatever I paid, plus my filed refund amount exactly matched the interest and penalties. IRS online account was useless as I dropped AOL and any reset password request was sent to old AOL account for verification. Suddenly, about 6 months ago, I started getting through to live human beings.

I found that my lien was auto released, got a copy of the release sent to me and took it into the court clerk and paid the lady to file it myself. This is great for the court, not so great with the CRAs. I then found the Fresh Start program and had to set up an installment agreement with the IRS.
From my understanding, with Fresh Start, after 3 payments, you can file form 12555 or something like that (going from old memory.) which is Request for Removal of Lien.
Now that is the grail. So I'll find out what happens next month. My form is all filled out on my desk just waiting for that next payment to post.
Message 37 of 41
6speed8
Regular Contributor

Re: DW tax lien removed....


@Revelate wrote:

@6speed8 wrote:

@Revelate wrote:

@6speed8 wrote:

@Anonymous wrote:

Score just updated...went up two measly point..didn't say anything about tax lien being removed, just balance decrease....I think IMHO, if you can't remove all old baddie, then just let then age off... Removing them sometime dont help if your have good payment and credit record. DW REPORT has no missed payment , great aaoa, and excellent mix of credit. Never denied any credit that she applied for in recent 3 year, before that they just question her on the lien and medical collection, but never denied.
So if you have good payment history , credit score in the high 600's low 700's, just let the old baddies age off. Don't bother , the effect have wear off, but only when they are all removed can you jump to the high 700's... JUST MY OPINION.


The problem with that when it comes to a federal tax lien anyway, is how long it can stay in place. Partially using what I went through as an example, say you had a $50,000 lien - or whatever amount, and got the IRS to at least deem you "uncollectible" due to your income. Even if they do that, the lien will stay in place for 10 years. Legally they can do that even if they deem you uncollectible. Last resort option, or to just speed the process to get them out of your hair, is an Offer In Compromise. Even if they settle for $100 on that "$50,000 lien," once your Offer is accepted and paid, they remove the lien. No 10 years.


Being placed in an uncollectible status doesn't write off the lien, it simply stops the constant spam of letters and occasionally phone calls,  but it doesn't extend the SOL either.

 

I had one lien slip in and out of collectible/uncollectible status several times over the course of a decade - basically there's some tracking on tax returns and if you aren't making any money, there's nothing to go after as near as I could determine.

 

You are right though, you pay it, or settle with an OIC, a status of released can pretty much get a rubber stamp on removal in "best interests of the taxpayer" on a Withdrawl Form.  The OIC's of $100 though are mostly scams, there's an explicit calculation that has to be done (looks suspiciously like a bankruptcy worksheet I might add heh) on how much the IRS can reasonably expect to get over the remaining time (based on SOL) of the lien.

 

 

 


Yes definately, uncollectible doesn't end it. You are required to file tax returns if for whatever reason you don't. You will not receive any refunds if you are entitled,etc. And I know the worksheet well lol. The "fortunate" thing about the worksheet is like you said, pretty much a rubber stamp if the numbers jive. They have to accept it. It's not opinion-based or denied because they heard you wear funny purple hats on Fridays lol.


Nah, there'd be no such thing as people filing CH 13 BK's over Federal Tax liens if the IRS was always reasonable in accepting it Smiley Happy  Vast majority of OIC's are turned down actually.

 

Basically a CH 13 is the way to force an installment agreement on the IRS if you can't get it done via negotiation with them directly.


I didn't know there's a large denial rate. Maybe mine went through easily due to being placed in uncollectible first and being now permanently disabled. Just a thought. I think because my income will not drastically change EVER lol, it went right through. In my years dealing with it and all the research I did, I found that there were even members of congress pushing for more relaxed parameters for releasing liens. Hasn't passed of course. The basics of it were that if someone is deemed uncollectible with no forseeable change in income, then the "leave the lien in place for 10 years" should be reconsidered and released much sooner.

CH 7 Discharged 6/10/15
T/U - 643
EQ - 588
Ex - 647 as of 6/14/15
Message 38 of 41
Revelate
Moderator Emeritus

Re: DW tax lien removed....


@6speed8 wrote:

I didn't know there's a large denial rate. Maybe mine went through easily due to being placed in uncollectible first and being now permanently disabled. Just a thought. I think because my income will not drastically change EVER lol, it went right through. In my years dealing with it and all the research I did, I found that there were even members of congress pushing for more relaxed parameters for releasing liens. Hasn't passed of course. The basics of it were that if someone is deemed uncollectible with no forseeable change in income, then the "leave the lien in place for 10 years" should be reconsidered and released much sooner.


Many of the OIC's are either frivolous or not done to the IRS's standards from the people I talked to / research I did: you clearly qualified, and it's what the system was designed for.  As you said, it went through easily, and it should.  Had I attempted to pull similar I *should* have been denied.  No question.

 

I'm all for consumer rights, but I'm skeptical of easing up the standard: it worked where it was supposed to, should it be made easier?  A lien like a BK is supposed to hurt, though I've not experienced a single denial (other than for CLI's) as a result of my liens personally.  When I slipped into uncollectible status if I'd just started school and told the IRS "getting my degree and teaching certificate, come back in six years when I'm making 40k / year" should that have been grounds for a release?  Especially as when I went down that route, 2 years in I got derailed and went back to the old career?

 

Now if you can get it released since 2011 (IIRC Fresh Start implementation correctly before was just released) doesn't seem like a bad place: get righteous with your debt, you get it airstruck from your credit report.  If you don't, it's 10 years.   I'm OK with that personally and I've had a slew of liens.  What would be nice is if all the states followed the IRS's lead on that one.




        
Message 39 of 41
cem13
Established Contributor

Re: DW tax lien removed....


@Anonymous wrote:
Thanks..I think that after two years the effects are minimum, but there still a ceiling that your score can go...IMHO, medical collection shouldn't even be factor!!!!

I have a BK7 D/C JUN2011 showing on all 3 CRAs.  I have a State Lein showing on EX only, filed in JAN2011 and paid in 2012.  My EX is my highest score by about 5 points.  

 

So since I have a negative Public Record already in the BK7, the tax lein is not huring me.  The State withdrew the lein after I paid it but EX refuses to delete it while TU and EQ removed it with just a phone call.  It will be interesting to see my EX score after my BK7 ages off and the Tax Lein remains; although I will fight the tax lein again if it comes to that.

 

So far the tax lein has not hurt me in any way, shape or form.  I was denied a Delta AMEX because my BK7.  I recon'd and the CSR told me to re-apply when I hit the post 5 year discharge date.  So there you go.

 

 

FICO 08 JUL23: TU 850; EQ 846; EX 843. Clean since BK7 D/C 6/2011.
Message 40 of 41
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