hi my name is brennan i recently discovered a tax lien is still on my CR. I receved a tax warrant some time in feb. 09, this was the first i learned of any owed taxes. i called the tax department i found out it was an error on my tax return, so i sent them a check. they cashed it on 03/16 and the credit agencys picked the judgement up 03/17. Its still on my report but the tax dept is suposedly sending me a letter. It seems unfair the only notice was a warrant. I didnt relize how much it would affect my CR (790's to 693). Does anyone have any advice? I was thinking of buying a house. thanks
Why do you think it unfair that you were only notified one time? Dispute it with the CRA and hope for the best.
The IRS supposedly has 30 days to release a tax lien once you pay up. However, in reality this is something that's often overlooked. You usually need to get on their case about it. Order three official copies of the release from the IRS and take the initiative to send them to each of the three major CRAs. While the lien may still remain on your credit report for up to seven years, at least it will show as paid or satisfied debt.
My mistake...thanks for the correction enigma. The IRS issues liens, but I believe they're basically the same thing as warrants issued by the state. They just differ in name. I would still take the same approach with the state.
Was it state tax or Federal tax? I was under the impression that paid tax liens stay on seven years after it's been paid.
sorry went away for wkend and i am new to boards. It was a state tax warrant and it was the first and only notice i received so even paying it right away didnt stop it from being on CR. I think this is unfair, it was an adjustment on my 06 NYS personal tax return. I know that it will take seven years to go away but I beleive that they should have notified me at least once before it went into judgement with one certified letter. thanks everyone for all your response's.
liens usually stay on seven years from paid or released date. If you are a California resident they drop off your file 10 years from filing date. Different credit bureaus have different retentions but as rule of thumb 7 from date paid is the max time frame they will stay on file.
You might want to refresh your memory by reading the FCRA, AND, especially 605(a)(3). Your statement is incorrect.
While it may state "3) Paid tax liens which, from date of payment, antedate the report by more than seven years. " in the FCRA Enigma is ignorant to the fact that credit bureaus have different retention rules. The FCRA is a guideline and the bureaus do have to right to favor the consumer with a more favorable stance. As far as CA resident please see the francise state tax board as it states "Once a state tax lien is recorded, the lien continues in effect for 10 years and expires 10 years from the date of recording or filing, unless extended. If a lien expires we do not send a lien release to the county for recording. (California Government Code Section 7172 (b))" So again you get your facts straight.
