topic Re: Possible NC State Tax Lien in General Credit Topics

Possible NC State Tax Lien

Anonymous — Wed, 26 Jul 2017 10:30:11 GMT

Does anyone have an experience with NC state tax liens? I haven't had one issued on me yet, but according to a rep on the phone, they can issue it at anytime. I owe from 2011 and 2012. I have pretty decent credit right now and I don't want this to affect it. The problem iis I can't start paying on it right now. They told me I can do a payment plan which I wouldn't mind doing when I get back to work. If it does go on my credit, can it be removed once it's paid? I've read that some states do this.

Re: Possible NC State Tax Lien

medicgrrl — Wed, 26 Jul 2017 12:19:17 GMT

They will garnish your wages and take your tax refunds if you don't work out a payment plan. As far as credit, I could never find anything where they would vacate the lien, just showed it paid. I never pulled a copy so I'm not sure how it shows up in the public records or whether it meets the new reporting guidelines.

I'm surprised it took them this long to come after you for the amount owed. They're usually much faster about it.

Re: Possible NC State Tax Lien

RobertEG — Wed, 26 Jul 2017 18:43:38 GMT

Tax lines are required to be excluded no later than 7 years from the date paid.

Thus, the exclusion period does not begin to run until the debt is paid.

Under the new National Consumer Assistance Plan, a CRA must review the posted public record information at least once every 90 days.

Additionally, the CRA will remove if the lien does not provide your name, address, and yur DOB or SSN.

If the state vacates the lien from their public record posting or it does not include the requried name, address, and DOB or SSN, the CRA must remove from your credit report.

Re: Possible NC State Tax Lien

Anonymous — Wed, 09 Aug 2017 13:34:27 GMT

@medicgrrl wrote:
They will garnish your wages and take your tax refunds if you don't work out a payment plan. As far as credit, I could never find anything where they would vacate the lien, just showed it paid. I never pulled a copy so I'm not sure how it shows up in the public records or whether it meets the new reporting guidelines.

I'm surprised it took them this long to come after you for the amount owed. They're usually much faster about it.

The funny thing is they aren't actually coming after me any differently than usual. I just happened to be checking my credit scores and thought I should look into it before its too late. I should be able to start paying on it within the next 2 months. I'm just worried that they'll take action before I have a chance to start paying on it. Part of me thinks that since they haven't done anything yet after all these years, nothing is going to happen in a month or two, but you never know.

Re: Possible NC State Tax Lien

jamie123 — Sat, 12 Aug 2017 21:34:55 GMT

@Anonymous wrote:
@medicgrrl wrote:
They will garnish your wages and take your tax refunds if you don't work out a payment plan. As far as credit, I could never find anything where they would vacate the lien, just showed it paid. I never pulled a copy so I'm not sure how it shows up in the public records or whether it meets the new reporting guidelines.

I'm surprised it took them this long to come after you for the amount owed. They're usually much faster about it.

The funny thing is they aren't actually coming after me any differently than usual. I just happened to be checking my credit scores and thought I should look into it before its too late. I should be able to start paying on it within the next 2 months. I'm just worried that they'll take action before I have a chance to start paying on it. Part of me thinks that since they haven't done anything yet after all these years, nothing is going to happen in a month or two, but you never know.

Listen up!!!

They don't come after you for several years because there is a very important reason behind that decision. After 2 years you can no longer deny that you owe that money. The penalties and interest also accrue making more money for them to collect, and collect they will.

Do not mess with the Government! Call them and set up a payment plan now!

A Government tax lien is the most difficult to repair item on your credit report! Liens can be almost impossible to remove!

I am speaking from experience here. I hired a tax attorney to have mine paid and removed and it ONLY took 19 months. The only reason my tax liens were even removed was because they changed the laws. I had 2 State Tax liens that have been on my reports since 2006 and they just dropped off a couple of weeks ago.

Don't mess with the Government because they will mess you up!

Re: Possible NC State Tax Lien

Anonymous — Mon, 18 Sep 2017 05:00:35 GMT

Still not in position to pay the monthly payment. I was thinking maybe I can put the monthly payment on my credit card until I can start paying it out of my bank account. Anyone have any thoughts on going that route?

Re: Possible NC State Tax Lien

Anonymous — Mon, 18 Sep 2017 15:19:33 GMT

@Anonymous wrote:
Still not in position to pay the monthly payment. I was thinking maybe I can put the monthly payment on my credit card until I can start paying it out of my bank account. Anyone have any thoughts on going that route?

I was going to recommend this. If it's not easily put on a credit card, take a cash advance from the card and deposit it into your bank account.

Re: Possible NC State Tax Lien

Anonymous — Mon, 23 Oct 2017 20:04:16 GMT

So after reading over some paperwork the NC Dept of Revenue sent me and it basically says that I can contact the credit bureaus to have the Certificate of Tax Liability released after the tax bill is paid. To me this sounds like what NC's verison of a tax lien is and if they issue a lien against me, I can have it removed once paid instead of having to wait 7 yrs. Does this sound correct or is there something else they can put on my credit that would stay on there for years?

Re: Possible NC State Tax Lien

medicgrrl — Mon, 23 Oct 2017 21:57:45 GMT

@Anonymous wrote:
So after reading over some paperwork the NC Dept of Revenue sent me and it basically says that I can contact the credit bureaus to have the Certificate of Tax Liability released after the tax bill is paid. To me this sounds like what NC's verison of a tax lien is and if they issue a lien against me, I can have it removed once paid instead of having to wait 7 yrs. Does this sound correct or is there something else they can put on my credit that would stay on there for years?

I do believe a release just indicates it's paid. Mine stayed on for 7 years and I couldn't find anything about vacating the lien.

Re: Possible NC State Tax Lien

jamie123 — Mon, 23 Oct 2017 23:14:36 GMT

@Anonymous wrote:
So after reading over some paperwork the NC Dept of Revenue sent me and it basically says that I can contact the credit bureaus to have the Certificate of Tax Liability released after the tax bill is paid. To me this sounds like what NC's verison of a tax lien is and if they issue a lien against me, I can have it removed once paid instead of having to wait 7 yrs. Does this sound correct or is there something else they can put on my credit that would stay on there for years?

Yeah, you can contact the credit bureaus and ask to have the lien released but you need it REMOVED from your report. Credit bureaus' answer: No!

A released tax lien has just as much negative impact on scores as an upaid lien. You will however be able to get a mortgage with a paid tax lien on your reports. Nobody will give you a mortgage with an unpaid tax lien on your reports.

Once a tax lien hits your reports they are super difficult to have removed. Each state has their own laws but you generally have to pay the lien off then go to State Court and ask to have the lien withdrawn. They can say no but if you are lucky they will say yes. Once you have the withdrawal documentation you can then send that to the credit bureaus to have it removed.

The difficulty with state tax liens is that they don't have guidelines or rules to follow to have the liens withdrawn. This usually entails hiring a tax attorney and they don't come cheap. (Speaking from experience.)

Re: Possible NC State Tax Lien

pizza1 — Tue, 24 Oct 2017 00:23:11 GMT

@Anonymous wrote:
So after reading over some paperwork the NC Dept of Revenue sent me and it basically says that I can contact the credit bureaus to have the Certificate of Tax Liability released after the tax bill is paid. To me this sounds like what NC's verison of a tax lien is and if they issue a lien against me, I can have it removed once paid instead of having to wait 7 yrs. Does this sound correct or is there something else they can put on my credit that would stay on there for years?

Here's the skinny....

on State Tax liens, the DOFD starts after the debt has been paid in full. So, for example, lets say they report your lien/judgement in Nov 2017, and you work out a payment plan. Lets say you take 4 yrs to pay it off, and it becomes PIF/"released" in Nov 2021. The 7 yr rule starts ticking at Nov 2021.

State Tax liens are the hardest to get removed off your reports, and your scores will take a dive in a major way. You will then be re-bucketed into a dirty bucket. Once its paid, the credit reports will reflect "released/paid", but it will stay on reports for 7 yrs from the date it was paid in full. Public records are scored very dofferently with FICO, and majorly.

I would suggest you call and make payment arrangements now, and tell what you can afford to pay now, and what you can afford to pay later. If you dont make better contact with them, they will make it easier for them, adn harder for you by garnishment, and reporting.

If theres anyway you can get a loan to pay it off....Discover, Prosper, Sofi, etc... or put some paymetns on a CC for a bit, anything??? I would suggest doing something before it hits your reports.

I'll use my own example too....my tax lien was filed in 2011, it hit my reports (had no idea till I went to file BK, and my attorney saw it). I called, made arrangemts, and it was paid in Oct 2013. Ive been trying for 4 yrs to get it removed from the CRA's....no luck. It will fall off in Nov 2020.

Re: Possible NC State Tax Lien

JVille — Tue, 24 Oct 2017 05:21:12 GMT

Do you have family who can help you clear this Tax bill Before the slap a lien on you and ruin your credit? The make payments to the Family Member or maybe a 401K Loan. These other options will protect your credit but you need to move fast before the State comes after you!

Re: Possible NC State Tax Lien

Anonymous — Tue, 24 Oct 2017 17:57:48 GMT

@pizza1 wrote:
@Anonymous wrote:
So after reading over some paperwork the NC Dept of Revenue sent me and it basically says that I can contact the credit bureaus to have the Certificate of Tax Liability released after the tax bill is paid. To me this sounds like what NC's verison of a tax lien is and if they issue a lien against me, I can have it removed once paid instead of having to wait 7 yrs. Does this sound correct or is there something else they can put on my credit that would stay on there for years?
Here's the skinny....

on State Tax liens, the DOFD starts after the debt has been paid in full. So, for example, lets say they report your lien/judgement in Nov 2017, and you work out a payment plan. Lets say you take 4 yrs to pay it off, and it becomes PIF/"released" in Nov 2021. The 7 yr rule starts ticking at Nov 2021.

State Tax liens are the hardest to get removed off your reports, and your scores will take a dive in a major way. You will then be re-bucketed into a dirty bucket. Once its paid, the credit reports will reflect "released/paid", but it will stay on reports for 7 yrs from the date it was paid in full. Public records are scored very dofferently with FICO, and majorly.

I would suggest you call and make payment arrangements now, and tell what you can afford to pay now, and what you can afford to pay later. If you dont make better contact with them, they will make it easier for them, adn harder for you by garnishment, and reporting.

If theres anyway you can get a loan to pay it off....Discover, Prosper, Sofi, etc... or put some paymetns on a CC for a bit, anything??? I would suggest doing something before it hits your reports.

I'll use my own example too....my tax lien was filed in 2011, it hit my reports (had no idea till I went to file BK, and my attorney saw it). I called, made arrangemts, and it was paid in Oct 2013. Ive been trying for 4 yrs to get it removed from the CRA's....no luck. It will fall off in Nov 2020.

I could put some on a cc. I just don't want my cc debt to spiral out of control. I've actually spoken to them about a payment arrangement. I'm hesistant to do it because I read on their website that they can still issue a lien even if I'm on a payment arrangement. The payment arrangement would be managable but would make finances tight. So I'm thinking now is it worth doing if they could issue a lien anyway.

Re: Possible NC State Tax Lien

jamie123 — Wed, 25 Oct 2017 03:50:14 GMT

Talk to them. Really, ask them if they will file a lien if you set up a payment plan. I think the only reason they would file a lien is if you fell behind in your payment plan. Yeah...They don't mess around!

Think about it this way...

You can go through the next couple of years with good credit on a tight budget because you are making payments on your repayment plan or you can go through the next 10 to 15 years with garnished wages and ruined really crappy credit. The choice is yours. They will get their money one way or another.