MAJOR HELP Needed:State Tax Lien

Discussion in 'Credit Talk' started by moneyelf, Sep 29, 2003.

  1. moneyelf

    moneyelf Well-Known Member

    Mine is s state tax lien. Been diigging in my home files more since my first wild post:

    I have been living away from this state with the lien for over 5 years. Just found the item listed twice on credit reports-it is a new listing and same lien reported by two state offices, hence why it is on their twice. Before I had learned not to I called the state and gave them my current adddress because I wanted to get to the bottom of this. I know, not really wise but at leat I can now see why the total amount is so high. Nearly %$1500(see below).

    Historically, I am not a great record keeper (of course I am better at it now) so I do not have much tax info from the either year and no W-2s at all from one year. Not even copies of filing. As far as I can recall I always filed but the state says they don't have proof so as far as they are concerned I never filed. The second year they say I owe for I moved away to the new state in April. Now here is the kicker. I went through all info I do have (not much) and am realizing that I likely had to sign a 10-99 form since I worked with a placement agency that last 12 months or so. The clients paid me when I worked and a one time fee to the headhunter. I did locate a few tax records clients sent to me at year's end BUT don't know where the others are (if they sent them at all) and don't have records anymore re:how I handled those taxes. I am willing to file again but how do I get ALL the info I need since I only have records from a few clients?How to clear the CRA records even need I need to pay money? Do the states follow the FCRA?

    Also, another thing: the rep at the state says I may not even owe any money at all but since as far as she is concerned I did not file so I have to file to find out! Either way they report!

    I am reading threads but any immediate advice someone may have would be appreciated:

    Info:
    Tax year :1998-$230+ Penalty:$150+
    Interest: 140+ Collection fees: 80+
    Payments: $0 Adjustments: $0


    Tax year :1997-$300+ Penalty:$170+
    Interest: 200+ Collection fees: $100+
    Payments: $0 Adjustments: $20+

    If I don't owe in the end how can I make the state take the info off my CRA's? How do I get a hold of the tax info they seem to have in order to try and get me to pay all of this? I mean what is the proper way to get them to send me poof of money I made?

    I am seriously considering signing up with Prepaid Legal.
     
  2. sirrowan

    sirrowan Well-Known Member

    Did you use a tax service, or do you prepare your taxes yourself? If you use a tax service, they should have copies of all 1099's and w-2's etc. Also, if you did indeed file for these years, they would have a copy of the returns as well.

    If you self prepared your returns, you should write to the IRS and request a copy of your tax returns with all supporting documentation, like 1099's and w-2's. This way you can recreate your tax return.

    If you have to recreate your tax return, back date it to the correct filing date ( a little dishonest but it will work), sign it and mail to the state. It will probably take a few months to clear this up, but it should work.
     
  3. DanS

    DanS Well-Known Member

    I'm a little fuzzy on the details but let me tell you what I know about the state of MA and the DOR.

    A tax lien is filed with the registry of deeds for the county I reside in at the time it it filed. That lien, a public record, is not something that can be removed (either routinely or at all, not sure on the technicalities). When I settled up w/the MA DOR, a release was filed w/the same registrar of deeds.

    So there are two places this lien can be viewed. One is in the public records for the state it was filed in, and the other is your credit report.

    It is possible to get the CRA to delete it if they can't verify it. In my case, I got a few liens deleted that way.

    Then I updated the CRA w/release dates. In theory, they will drop off 7 years from the release date.

    So far I've talked about what's *visible* for your liens.

    The source of the problem sounds like the state does not have any record of your filing taxes for a given year or several years. Your data sounds quite incomplete and doesn't give you much to challenge with. There is normally a range of time for these things, *except* for not filing.. anyway, given your lack of documentation, I would ask the IRS for copies of your tax returns from those years.

    Assuming they exist (yes, they lose stuff OR perhaps you didn't file at all), you can use that data to file an "amended" return with the state. Trust me on this next statement - NEVER admit you DID NOT FILE. Assert you did, you may not have proof of that filing, but your filing w/the IRS is perfectly suitable for their purposes.

    If you can not obtain copies of your IRS returns, you will have to use whatever documentation you have to counter their version of your income/expenses. You did have some sort of 10-99 filed, so there will be a record of some income. That is what they will "give" you, then you've got to make a case for reasonable expenses. If you wind up on this path, hire a Damn Good Accountant to help you.
     

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