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bewildered

Tax Liens

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There is a lot of great info on this site and this forum. I haven't found a lot on tax liens though there is some. My TU shows a state tax lien from 1995, EX has a 2002 fed tax lien and EQ has the same 2002 fed tax lien. I don't believe the state tax lien is mine but since it is from 1995 shouldn't it have to be removed in any event since it is more than 7 years old? A few months ago I talked to my CPA about negotiating with the IRS on the fed lien. He suggested I ignore it because the sol would run out in December if the lien wasn't renewed (I was never notified so I think it was not renewed). Still both of these are on my CRs and I'd like to do whatever I can to eliminate as much negative impact as possible. Suggestions for a strategy?

Also I have 3 items in collection with each of the CRAs, they are not all the same but some are. All but one item is medical related. I think I've paid some of them though I'm not sure I can prove that. The other is credit card. They are mostly small amounts that I can pay. But I would like to remove the negative impact. Should I try going to the original creditor first (on the med bills) and offer to pay them in exchange taking off the negatives on my CRs? (I've seen the sample letters and understand what to ask for). Just looking for who to contact first CRAs or the creditors or CAs?

Of course I have delinquencies and derogatories on each too. I'm wondering whether to start by dispute all negative items in one letter, or do it more piecemeal, picking off the more damaging stuff first? I notice someone suggested disputing 1/2 one month, then the other half after those have been challenged. There was also a suggestion that you get a MailBoxes Etc address before beginning. What is that about?

I'd appreciate suggestions on where to start with this mountain of crap I've created!

truly Bewildered.

:?

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Tax liens stay on forever until they're paid ... then seven more years.

You think the government is going to write something into the FCRA that sunsets reporting of money they got screwed out of?

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Tax liens are the worst. You are better off paying the tax liens

with credit cards if you dont have the money and then disputing

the charge off ccards.

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Here is some info that may help.

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 8951]

RIN 1545-AV00

Withdrawal of Notice of Federal Tax Lien in Certain Circumstances

There was a post related to this not long ago.

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So is there no point in disputing a tax lien? I'm goint to dispute come collections and delinquencies does that make a difference? Would it be best to dispute all the negatives on a CR or just some of them?

Thanks for any advice.

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I would start out by calling up the CRA's and having them remove old addresses and aliases (names). Next, I would just dispute all of the records you want deleted. You may get lucky with the State Tax Liens, but the IRS Federal Tax Lien will most likely stay.

The SOL for IRS Federal Tax liens in 10 years from the time you filed your taxes. The IRS is not allowed to toll (extend) the SOL without your permission. Also, if you submit an Offer in Compromise (OIC) it will pause the running of the SOL while the OIC is being processed, thus extending the SOL.

If you want the lien off your report, the best bet is to file for an Installment Agreement and then for a Withdrawal (this may enable you to get the tax lien deleted from your credit reports). If the tax liability is outragous and it will take of 5 years to pay with an Installment Agreement, you may be better off just filing for an OIC and living with a "Released" tax lien. Yet another alternative ... If you filed your taxes over 2 years ago, you can file for bankruptcy to discharge the Federal tax liability -- I would stay away from this one if possible.

State laws vary, so I really can't provide advice.

BTW ... Most CRA's verify lien records with Dolan Information.

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That was helpful. My fed tax liability is just over 10 years old. I never had an OIC or installment agreement (tried a couple times but never reached agreement). My CPA said if they didn't re-file the tax lien that the SOL was up on December 22 or something like that of last year (he had copies of all the IRS paperwork). So at this point the main reason to negotiate anything with them would be to get the lien off my credit report. According to the CPA I am no longer obligated to pay them. I thought (or maybe just hoped) that if I disputed the lien they would find that it is no longer in effect and it might drop off. But sounds unlikely I guess?

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The info in your first post doesn't match up with your last post ... Where does 10 years come into play on the lien you mentioned? Are you saying that the IRS recieved your tax forms December 22 of 1993?

Your CPA said the IRS could refile the lien? I think he is basing this old laws (before reforms in the late 90's) or he is referring to parts of the law that allow a lien to be refiled in some specific circumstances. Recent tax reforms severely restrict the tolling of the 10 year SOL.

BTW ... Some states exempt state taxes from the SOL.

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One is the date the CRs have as the lien date, the other is the date that the SOL on collection runs out if the IRS doesn't re-file (they didn't, or at least I can't find that they did. My CPA predicted they would not since I wasn't a "high profile" case.)

While the tax year in question is old, the lien was relatively recent (filed in 2002). Still the lien expired in December. The IRS has no further collection effort pending, lien or otherwise.

This is a more complex question ... You will have to actually look at the tax lien and see what dates they put on the paperwork. Look for the phrase "Last Day for Refiling" and check the date/s. Once that date has passed the IRS is required to promply file a Release.

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Thanks. That date was December 22 of 2003. But that doesn't mean it will come off the CR does it? It will still be a matter of record for years, right?

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Thanks. That date was December 22 of 2003. But that doesn't mean it will come off the CR does it? It will still be a matter of record for years, right?

The FCRA states it would be 7 years from the date of Release.

I would also suggest that you contact a lawyer for a consultation before you assume the 10 year SOL has expired. A one hour consultation should do the trick if you bring/provide all of your documents -- Just make sure that the lawyer has extensive experience with IRS appeals

If everything is in order and the SOL has really expired, you should request a Release from the IRS if they have not already filed it. An IRS tax lien must be released when your tax liability is paid, eliminated by the ten-year statute of limitations, or settled in an Offer in Compromise. The IRS is required to file the Release in the same county as the original lien.

Some of the things you posted did not quite add up, so I am concerned that some of the advice I provided may be totally wrong. The items I am particularly worried about are the date you actually filed your taxes and why the IRS filed a lien one year before the SOL was up. The filing of a Notice of Federal Tax Lien (NFTL) one year before the SOL was up is unusual.

Assuming all goes well ... Try this method in order to get the record deleted from your report.

http://www.creditreportrights.com/forum/viewtopic.php?t=3209

The link is down at the moment, but I expect it to be up in a few days. The foolish Administrator did not renew his domain registration.

Note: I was successful getting the IRS to do a Withdrawal, but the law is more suited to a taxpayer who owes a significant amount of money. I have yet to find someone who has managed to get their original NFTL Withdrawn after it was already Released.

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I had a couple of federal tax liens that were never paid, and they did eventually fall off. This was a while back, so maybe things are different now.

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Thanks for the advice!

cd, you mentioned having the CRAs delete old addresses and names. Are they required to delete previous addresses, or variations of your name (first, mi vs first, or two initials, etc)? What is the purpose of doing this.

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Thanks for the advice!

cd, you mentioned having the CRAs delete old addresses and names. Are they required to delete previous addresses, or variations of your name (first, mi vs first, or two initials, etc)? What is the purpose of doing this.

It will make it harder to verify the public records ... The public records are not always filed by SSN.

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That makes sense. I'm surprised they are willing to delete old addresses or aliases though. What reason do I give them for wanting to delete them?

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