topic Re: state tax lien is it too late in General Credit Topics

state tax lien is it too late

swins24 — Mon, 26 Apr 2010 19:07:31 GMT

I just got a letter from the state of Kentucky today saying that I had a tax debt remained unpaid from the 45 days they sent the notice out, and that a tax lien has Ben filed in the appropriate county clerks office. I called and set up a payment arrangement for the small balance due and ask had a tax lien Ben filed. He said yes it was filed April 20. Am I too late to stop this from being reported on my credit report or is there something I can do? It hasn't showed up yet but I just got my score over 600 how much will this hurt? Will i have a certain amount of time to pay it before it will reflect on my report or is it already to late?

Re: state tax lien is it too late

Anonymous — Tue, 27 Apr 2010 00:10:30 GMT

You would need to talk to the same people. If it has been filed it will probably be reported.

If you are making payments they may be able to stop it.

Re: state tax lien is it too late

Anonymous — Tue, 27 Apr 2010 02:17:37 GMT

@Anonymous wrote:
You would need to talk to the same people. If it has been filed it will probably be reported.

If you are making payments they may be able to stop it.

Agree.

Only the state can have the lien removed from public records. Some states are nice about these things. Others not so nice.

Re: state tax lien is it too late

Anonymous — Tue, 27 Apr 2010 02:38:43 GMT

if the state were to remove it from the public records, what scenario would follow:

1) all traces of it are removed and the OP's credit score goes back to exactly where it was before all this occured

2) the lien entry is left on the credit report, and then another entry is entered which says the lien has been released

Scenario #2 doesn't seem fair because OP's credit score would still be messed up from this, right?

Re: state tax lien is it too late

Anonymous — Tue, 27 Apr 2010 02:48:39 GMT

@Anonymous wrote:
if the state were to remove it from the public records, what scenario would follow:

1) all traces of it are removed and the OP's credit score goes back to exactly where it was before all this occured

2) the lien entry is left on the credit report, and then another entry is entered which says the lien has been released

Scenario #2 doesn't seem fair because OP's credit score would still be messed up from this, right?

If the lien were paid and it were not removed from public records, it would be marked as satisfied / released. I believe the score would remain the same.

If removed from public records, the OP's score should return, in theory, to where it was before the lien hit his credit report. I say "in theory" because there are other factors such as age of accounts that come into play and could be influencing their credit score in addition to the lien.

There are those who think scenario #2 would be fair. After all, they did fail to pay their taxes and that can be seen as reflecting on creditworthiness. I'm not saying I agree (or disagree) with that line of thought, but there are those who do.

Re: state tax lien is it too late

swins24 — Tue, 27 Apr 2010 02:53:14 GMT

Thanx for all the input, I talked with someone from the county clerk office today and she said that she didn't see me in the system having a lien. I ask her about the credit report concern and she said that they don't report to CRA and that even if the KY department of revenue had filed the lien it would only mean that I could not buy or sell property until the lien was released. Does this sound right or should I call again to ask another rep?

Re: state tax lien is it too late

Anonymous — Tue, 27 Apr 2010 03:21:56 GMT

@swins24 wrote:
Thanx for all the input, I talked with someone from the county clerk office today and she said that she didn't see me in the system having a lien. I ask her about the credit report concern and she said that they don't report to CRA and that even if the KY department of revenue had filed the lien it would only mean that I could not buy or sell property until the lien was released. Does this sound right or should I call again to ask another rep?

The state does not report directly to the CRAs usually. What happens is that the lien is a public record and there are data aggregators who comb public records and then sell the data to companies such as CRAs. That's generally how these things appear on your credit report.

If the lien never made it into the county clerk / court clerk's lien book, then it might not show up on your credit report.

I'd ask the state where exactly the lien is filed and then go to that source to check whether or not the lien was filed there or not.

Re: state tax lien is it too late

Anonymous — Tue, 27 Apr 2010 03:22:42 GMT

@swins24 wrote:
Thanx for all the input, I talked with someone from the county clerk office today and she said that she didn't see me in the system having a lien. I ask her about the credit report concern and she said that they don't report to CRA and that even if the KY department of revenue had filed the lien it would only mean that I could not buy or sell property until the lien was released. Does this sound right or should I call again to ask another rep?

I'd say call and ask another rep. Personally, I don't think the county clerk's office needs to report for it to show up on your credit report. I think the CRAs hoover up data from court records.

According to http://revenue.ky.gov/laws/liens.htm:

* Once the debt is satisfied, then KY will file a release, which is a public record showing that the lien is no longer in effect. I don't know what the effect of a release, if any, is on your FICO, but it can't hurt to have the release listed for potential creditors.

* If the state decides the lien was filed incorrectly they'll contact the CRAs and ask to have it removed.

You might consider calling the KY Taxpayer Ombudsman, see http://revenue.ky.gov/ombudsman.htm.

Can't hurt and they might have something useful to tell you.

You may well find that despite your best efforts you're stuck with the lien on your CRs. If so, I'm pretty confident the impact lessens over time.

Re: state tax lien is it too late

swins24 — Tue, 27 Apr 2010 03:37:08 GMT

@Anonymous wrote:

@swins24 wrote:
Thanx for all the input, I talked with someone from the county clerk office today and she said that she didn't see me in the system having a lien. I ask her about the credit report concern and she said that they don't report to CRA and that even if the KY department of revenue had filed the lien it would only mean that I could not buy or sell property until the lien was released. Does this sound right or should I call again to ask another rep?

I'd say call and ask another rep. Personally, I don't think the county clerk's office needs to report for it to show up on your credit report. I think the CRAs hoover up data from court records.

According to http://revenue.ky.gov/laws/liens.htm:

* Once the debt is satisfied, then KY will file a release, which is a public record showing that the lien is no longer in effect. I don't know what the effect of a release, if any, is on your FICO, but it can't hurt to have the release listed for potential creditors.

* If the state decides the lien was filed incorrectly they'll contact the CRAs and ask to have it removed.

You might consider calling the KY Taxpayer Ombudsman, see http://revenue.ky.gov/ombudsman.htm.

Can't hurt and they might have something useful to tell you.

You may well find that despite your best efforts you're stuck with the lien on your CRs. If so, I'm pretty confident the impact lessens over time.

Ok I left this part out.The letter also stated that if I didn't pay the the debt or make arrangements within 60 days that it could be released on the internet and or local news paper's as a public record.

Re: state tax lien is it too late

Anonymous — Tue, 27 Apr 2010 03:49:40 GMT

besides calling another clerk, you should also check to see if the relevant county has a website which enables you to search for liens under your name

Re: state tax lien is it too late

Anonymous — Tue, 27 Apr 2010 05:35:58 GMT

@Anonymous wrote:

@swins24 wrote:
Thanx for all the input, I talked with someone from the county clerk office today and she said that she didn't see me in the system having a lien. I ask her about the credit report concern and she said that they don't report to CRA and that even if the KY department of revenue had filed the lien it would only mean that I could not buy or sell property until the lien was released. Does this sound right or should I call again to ask another rep?

I'd say call and ask another rep. Personally, I don't think the county clerk's office needs to report for it to show up on your credit report. I think the CRAs hoover up data from court records.

According to http://revenue.ky.gov/laws/liens.htm:

* Once the debt is satisfied, then KY will file a release, which is a public record showing that the lien is no longer in effect. I don't know what the effect of a release, if any, is on your FICO, but it can't hurt to have the release listed for potential creditors.

* If the state decides the lien was filed incorrectly they'll contact the CRAs and ask to have it removed.

You might consider calling the KY Taxpayer Ombudsman, see http://revenue.ky.gov/ombudsman.htm.

Can't hurt and they might have something useful to tell you.

You may well find that despite your best efforts you're stuck with the lien on your CRs. If so, I'm pretty confident the impact lessens over time.

A tax lien is not a public record until filed. State taxation authorities in most states -- including Kentucky -- issue a tax lien as an administrative process and then file the lien with the court clerk in the appropriate county.

Re: state tax lien is it too late

Anonymous — Tue, 27 Apr 2010 05:41:24 GMT

Yes, but the OP said, "at a tax lien has Ben filed in the appropriate county clerks office".

Re: state tax lien is it too late

Anonymous — Tue, 27 Apr 2010 06:13:01 GMT

@Anonymous wrote:
Yes, but the OP said, "at a tax lien has Ben filed in the appropriate county clerks office".

Most of the time there is an extremely significant difference between county clerk and court clerk. A lien in most states -- including KY -- must be filed with the court clerk. Until filed, it is not a public record and, as such, cannot show up on your credit report unless the state reports the data directly to the CRA, which Kentucky does not.

It is not at all uncommon for people to say county clerk when, in fact, they mean to say county court clerk.

In addition, CRAs do not collect data from court clerks. They obtain the data from middlemen who obtain the data from court clerks or, in extremely rare instances, when court clerks furnish data directly to the CRAs.

Re: state tax lien is it too late

swins24 — Tue, 27 Apr 2010 10:42:10 GMT

@Anonymous wrote:
@Anonymous wrote:
Yes, but the OP said, "at a tax lien has Ben filed in the appropriate county clerks office".

Most of the time there is an extremely significant difference between county clerk and court clerk. A lien in most states -- including KY -- must be filed with the court clerk. Until filed, it is not a public record and, as such, cannot show up on your credit report unless the state reports the data directly to the CRA, which Kentucky does not.

It is not at all uncommon for people to say county clerk when, in fact, they mean to say county court clerk.

In addition, CRAs do not collect data from court clerks. They obtain the data from middlemen who obtain the data from court clerks or, in extremely rare instances, when court clerks furnish data directly to the CRAs.

Well unless the state made a mistake in wording the letter.The letter does in fact say's county clerk and not court clerk.I will be making some more calls this morning to see exactly what is going on.

Re: state tax lien is it too late

Anonymous — Tue, 27 Apr 2010 10:56:58 GMT

@swins24 wrote:
@Anonymous wrote:
@Anonymous wrote:
Yes, but the OP said, "at a tax lien has Ben filed in the appropriate county clerks office".

Most of the time there is an extremely significant difference between county clerk and court clerk. A lien in most states -- including KY -- must be filed with the court clerk. Until filed, it is not a public record and, as such, cannot show up on your credit report unless the state reports the data directly to the CRA, which Kentucky does not.

It is not at all uncommon for people to say county clerk when, in fact, they mean to say county court clerk.

In addition, CRAs do not collect data from court clerks. They obtain the data from middlemen who obtain the data from court clerks or, in extremely rare instances, when court clerks furnish data directly to the CRAs.

Well unless the state made a mistake in wording the letter.The letter does in fact say's county clerk and not court clerk.I will be making some more calls this morning to see exactly what is going on.

Copies of tax liens can be obtained from the county court clerk in the county where the lien is filed.

http://revenue.ky.gov/laws/liens.htm

Re: state tax lien is it too late

swins24 — Tue, 27 Apr 2010 15:10:37 GMT

@Anonymous wrote:
@swins24 wrote:
@Anonymous wrote:
@Anonymous wrote:
Yes, but the OP said, "at a tax lien has Ben filed in the appropriate county clerks office".

Most of the time there is an extremely significant difference between county clerk and court clerk. A lien in most states -- including KY -- must be filed with the court clerk. Until filed, it is not a public record and, as such, cannot show up on your credit report unless the state reports the data directly to the CRA, which Kentucky does not.

It is not at all uncommon for people to say county clerk when, in fact, they mean to say county court clerk.

In addition, CRAs do not collect data from court clerks. They obtain the data from middlemen who obtain the data from court clerks or, in extremely rare instances, when court clerks furnish data directly to the CRAs.

Well unless the state made a mistake in wording the letter.The letter does in fact say's county clerk and not court clerk.I will be making some more calls this morning to see exactly what is going on.

Copies of tax liens can be obtained from the county court clerk in the county where the lien is filed.

http://revenue.ky.gov/laws/liens.htm

Ok here is exactly what it say's

This letter is to notify you that Department records indicate that you

have a debt that has remained unpaid for more than 45 days after the ~

original notice due was mailed. Department records further indicate

that you did not file a written protest or make arrangements with the

Department to pay or resolve the liability within the 45 day period

provided by KRS 131.110 to timely protest an assessment. As a result,

your liability is due and payable and a state lien has been filed in

the appropriate County Clerk's office.

· Once a state lien has been filed, the Department may include your name

on a list of delinquent taxpayers which may be published for public

inspection in newspapers and the Internet if the debt remains unpaid

for sixty (60) days from the date of this notice.

The Department will not publish your name if within sixty (60) days of

this letter you pay the debt, enter into an agreement to pay, or

provide a written explanation showing that one or more of the following

_items applies:

1) You have a protest or appeal pending as of the date of this letter;

2) You have established a payment agreement with the Department

and are current;

3) The Department is in the process of reviewing or adjusting your

. liability;

¤h

A) You have initiated an active bankruptcy proceeding for the

liability;

5) The liability has been discharged as a result of bankruptcy;

6) The Department has been sent notification that the debtor

is deceased; or

7) The statute of limitations for enforced collection action has

expired.

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