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Do I have to do anything after IRS tax liens expire (10 years)?

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masscredit
Valued Contributor

Do I have to do anything after IRS tax liens expire (10 years)?

I have a number of IRS tax liens that have reached the 10 year mark and they weren't refiled. I just checked my local registry of deeds. The liens are still on file there. Do I have to do anything or are they just dead? The law changed a few years ago so they stopped reporting on my credit reports but they could probably still be seen if I was to apply for a loan or mortgage. If that's the case, would the lender still see them on file? 

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 6
5 REPLIES 5
FireMedic1
Community Leader
Mega Contributor

Re: Do I have to do anything after IRS tax liens expire (10 years)?

By law, your lien should be released within 30 days of the date that the tax debt was paid in full or 30 days from the date which the statute of limitations expired (usually 10 years from the date of assessment). If either of the aforementioned criteria have been met, the IRS has no choice but to issue a Certificate of Lien Release and mail it to you. The Certificate of Release is verification that the lien has been released. Seek a tax pro for further advise.


Message 2 of 6
masscredit
Valued Contributor

Re: Do I have to do anything after IRS tax liens expire (10 years)?

Thanks for the info! I did some research after reading your reply and found this -

Tax liens may contain a foreign language, but you can learn a lot if you know how to read them.  Let’s focus on the fourth column of the lien (column (d) ), and the fifth column (column (e).  They are the heart of the lien.

Column (d) provides the date the IRS made its assessment against you; in other words, the day the collection statute began.  Take the date in column (d) and add 10 years.  From the lien itself, we now have the date the IRS collection statute should expire.

 

As stated on the face of the lien, the lien itself operates as a certificate of releaseafter the collection statute expires. Column (e) gives you that date, which is 30 days after the IRS collection statute expired.

 

Looking at my liens, I see that they say - For each assessment listed below, unless notice of the lien is refiled by the date given in column (e), this notice shall, on the day following such date, operate as a certificate of release as defined in IRC 6325(a). 

 

So I guess the paperwork for the liens remain on file but they are automatically released. 

 

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 6
FireMedic1
Community Leader
Mega Contributor

Re: Do I have to do anything after IRS tax liens expire (10 years)?

One the lien/s you'll see date assesed. Thats the date plus 10 yrs. I'm sure they held your refund like they did myself for 14 yrs until they were DC in BK. Then the next year I started getting refunds again. That will be the tell tale sign that its over. They wont send $ if the lien is still active. A tax pro can send in a letter (form) requesting the release be sent to them if you dont recieve it soon. Or you can call 1-800-913-6050 to request a Certificate of Lien Release.


Message 4 of 6
masscredit
Valued Contributor

Re: Do I have to do anything after IRS tax liens expire (10 years)?

I make sure I don't overpay throughout the year so there isn't any money for them to hold. After today I have one left. That will be released in 2021. The first lien aged off in December of last year. I didn't receive anything and nothing was filed to say it was released. I'll ask my accountant when I have my taxes done next year. 

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 5 of 6
FireMedic1
Community Leader
Mega Contributor

Re: Do I have to do anything after IRS tax liens expire (10 years)?

More than likely it will happen when the last one is toast. I had 7 yrs listed on 1 lien. Man. Dont want to remember back to those days. Wasnt fun. Least its over 4 yrs ago.


Message 6 of 6
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