Discussion:Removing IRS tax lien
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Discussion Forum Index --> Tax Questions --> Removing IRS tax lien
| 17 April 2007 | |
| TP had some "problems with paying taxes" about 15 years ago. According to the guy, he is all paid up with the IRS. He just started a business in MI and MI won't issue his builders license until the lien is removed by the IRS. The IRS does not show him owing any more money. How do we clear this up? | |
| 17 April 2007 | |
| lien expires after 10 years - check for the filing in the county courthouse | |
| 18 April 2007 | |
| The client can obtain a certificate of release for this lien by calling 1-800-913-6050. | |
Jennygoldmac (talk|edits) said: | 18 April 2007 |
| I have contacted the IRS and the Tax Payor Advocate Service and a release will not be issued.
They both state that the lien is "self-released" and are not under any obligation to record a release at the Federal District Court. Records obtained from the credit reporting agency show the lien as active and will not honor copies of the lien although it clearly states that it is self released. | |
| 18 April 2007 | |
| Sounds like you've got a beef with the credit bureau, not the IRS. Write them a letter. They have to follow up on it. | |
Jennygoldmac (talk|edits) said: | 18 April 2007 |
| I did write to the credit bureau and sent copies of the lien notice indicating the self release language and
also indicated the notation of "self released" on the lien. They would not accept the copies and verified with the Federal Court House that the lien is still on record. I have contacted the Court House and they claim that any changes to the lien status must be made by the IRS. The IRS is telling me that it is a court house issue and the court house is telling me that it is an IRS issue. I believe that part of the problem stems from the fact that an actual discharge was not recorded, hence regardless of what the lien certificate says a public records search indicates that the lien is active. I find it hard to believe that this is a unique problem. Anyone who has let the statute of limitations run out must be faced with this same problem. | |
Death&Taxes (talk|edits) said: | 18 April 2007 |
| You might try to contact the Taxpayer Advocates office at IRS, since it seems obvious that no one else wants to take action. | |
Jennygoldmac (talk|edits) said: | 18 April 2007 |
| I have contacted the Taxpayer Advocate and they were not able to help.
See previous notes. The position of the IRS and TAS is that it is a "self-releasing lien." They claim that they are under no obligation to record a release. | |
Death&Taxes (talk|edits) said: | 18 April 2007 |
| then I might try getting political help either with IRS or the county: this sounds like a pure Catch 22. | |
| 18 April 2007 | |
| surely it is a problem with the credit bureau. Nothing needs to be filed. The IRS has done its job. | |
| 18 April 2007 | |
| A self-releasing tax lien extinguishes the lien on the date indicated on the lien. However, this does not mean that the tax debt has been satisfied, nor does it mean that the collection period has expired.
This is of particular significance in the case of a taxpayer who has filed bankruptcy, and the collection period is tolled by the period of the automatic stay under 11 USC ยง 362. In such cases, the collection period and the lien expiration date do not coincide. In fact, the collection period can sometimes run out to 15 or 16 years in such cases. The credit bureau will not be particularly impressed that the lien has expired if the collection period is still open since the Service may revoke the self-release at any time under Sec. 6325(f)(2). My advice to you is to determine if the taxes have been paid, and if the taxes have not been paid, when the collection period on this tax expires. This could be affect by factors such as bankruptcy, offers in compromise, installment payment agreements, and statute extension consents. You should be able to obtain a transcript of the taxpayer's account. Finally, I am not sure why you are contacting the federal courthouse about a recorded tax lien. You should be contacting the county recorder. | |
| 19 April 2007 | |
| This is becoming a HUGE problem, and not just with IRS liens. Kevin is correct, unfortunately, you have a problem with the credit bureau; and they have picked this up from a public record (the deed records). It could be that your client will have to hire a civil attorney to get this corrected. It is extremely difficult to deal with the credit bureau. For an atty., check the National Association of Consumer Advocates. They are some of the few attorneys that work specifically in this area. Good luck. P.S. my understanding is that the longest that any item can stay on a credit report is 10 years.... but try that atty. group as they are experts. | |
