Discussion:Tax lien shows on credit bureau
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BottomLine (talk|edits) said: | 13 September 2006 |
| Got a client that has tax liens from 10-15 years ago for non-payment of 941 tax. He says the liens from 10-11 years ago no longer show on his credit bureau but the one from 15 years ago still does. He'll never be able to pay back the money and can't even afford to apply for an offer in compromise. He's trying to buy a junk car but can't get a loan because of the tax lien. He can't afford to pay me much less a tax attorney or CPA. Just looking for suggestions on who to tell him to talk to. This is one of those charity cases because he's a friend and I feel sorry for him. (No way I'd loan him the money for the car - I don't do charity that much!) | |
Death&Taxes (talk|edits) said: | 13 September 2006 |
| Assuming the assessment date is that old, and assuming there were not reasons such as Offers in Compromise to extend the Statute, or the taxpayer did not voluntarily agree to extend the statute, these debts should be extinguished by Statute of Limitations. IRS has ten years from date of assessment to collect tax. There used to be a Special Procedures branch in major IRS offices which would remove such liens, and if that fails, he could contact the Taxpayer Advocate. | |
| 13 September 2006 | |
| My understanding is that the longest an item can stay on the report is 10 years (this for a bankruptcy). Of course, this assumes that the bankruptcy over. Keep in mind that the credit bureaus get this info from public records, they are not associated, to my knowledge, with IRS as far as data sharing. So, even if IRS were to clear the lien, you might still have to deal with CB's. I think I'd tell him to go to FTC.gov, and follow links to get his free credit reports from the major 3. Then, following the instructions on his free reports (or online with them), contest the reporting of this 15 year old lien as being outside the 10 year max for reporting items. At the same time, I'd be following D& T's advice about the contact with the IRS. If he continues to have trouble, he might ultimately have to hire a consumer law attorney in his jurisdiciton. | |
| 13 September 2006 | |
| I wonder if he can do this? I logged in and viewed my credit report at www.creditexpert.com. There is an option in there that allows you to dispute an item online. I disputed an item and it was removed within 10 days. I spent maybe 5 minutes in total time. | |
BottomLine (talk|edits) said: | 14 September 2006 |
| Thanks a bunch! | |
| 14 September 2006 | |
| The lien information is taken from county records. If the client has ever filed bankruptcy, the collections period could be extended by as much as 2 years. Also, the 10-years runs from the assessment date. In any event, if the SOL has really expired, it is as simple matter to have the Internal Revenue Service file a satisfaction or cancellation of the lien with the county recorder by contacting the Internal Revenue Service CCP-Lien Unit. The phone numbers are on page 2 of Publication 1450. | |
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