Removal of (released) federal tax lien advice

[Anonymous]

Hello,

I incurred a federal tax lien in 2010 for tax year 2004.  Long story short, I was paralyzed in a jobsite accident in January of '05, so I couldn't pay the tax debt or even handle my affairs for that matter.  Fast forward to October 2009, I was finally able to address the debt (not yet a lien), I solicited the help of a tax professional and was subsequently ripped-off for $1,200 in prep fees (I have documents to prove this).  I was hit with the lien a few months later, but I was also able to pay it off - it was finally released in April of 2011.

I'm now trying to remove the lien history from my credit report.  Should I send a goodwill letter to the county recorder who's reporting it, or should I pursue the IRS "Fresh Start" route, or both?  Also, I plan to explain and prove the fraud on behalf the tax service in my letters.

Thank you.

[gdale6]

---

@Anonymous wrote:

Hello,

I incurred a federal tax lien in 2010 for tax year 2004.  Long story short, I was paralyzed in a jobsite accident in January of '05, so I couldn't pay the tax debt or even handle my affairs for that matter.  Fast forward to October 2009, I was finally able to address the debt (not yet a lien), I solicited the help of a tax professional and was subsequently ripped-off for $1,200 in prep fees (I have documents to prove this).  I was hit with the lien a few months later, but I was also able to pay it off - it was finally released in April of 2011.

I'm now trying to remove the lien history from my credit report.  Should I send a goodwill letter to the county recorder who's reporting it, or should I pursue the IRS "Fresh Start" route, or both?  Also, I plan to explain and prove the fraud on behalf the tax service in my letters.

Thank you.

---

Welcome to My Fico

A goodwill letter cannot be used on a tax lien. You need to file form 12277 with the IRS to have it withdrawn

[Anonymous]

Great!  Thank you.

[exw220]

Was the tax debt paid in full or settled for less?

[Anonymous]

Paid in full.  

[exw220]

Download the IRS form 12277 from their website. It helps to write a polite, brief letter to send with the form, and you ask for their help so you can have a normal life again. Also put the addresses of the 3 CRAs on the letter. They will send them copies of the withdrawal if you ask them.

[Anonymous]

Very helpful!  Thank you.