Tax Lien: Rlsd vs. Not:score effect

Discussion in 'Credit Talk' started by bizwiz41, Aug 4, 2003.

  1. bizwiz41

    bizwiz41 Well-Known Member

    Does anyone know how your "score" is affected for IRS tax liens for "Released vs. "Not Released"

    I have a paid & released lien (5/2001), that I (now!) understand shows as "Released" on my TU report. Exp report only shows the original, and appears to show it as NOT paid.

    Does anyone know how this translates into score?

    Does "disputing as released" do any good?

    I have a request for withdrawal in to the IRS, and I've put in "old address deletion" request to EXP and TU as "back up", if I need to dispute w/CRAs.

    So, anyone have any feedback? Thanks.....
  2. lakpr

    lakpr Well-Known Member

    Unpaid tax liens stay forever; paid tax liens are deleted after 7 year from the date of release.

    Rather than looking for quantitative assessment of score hit (focusing on "here and now") ... look at the long term impact. As long as that lien shows up on the report, you credit report is going to be perceived as negative, resulting in higher insurance premiums, sub-standard CC offers, etc. Do you want to pay that penalty forever? or only for 7 years?

    What I am trying to say is ... the exact score impact of 'released' vs 'unpaid' is unimportant. I'd suspect its very much like 'paid' and 'unpaid' collections ... no difference as far as FICO goes.

    My plan of action, if I were you, would be to delete the old address first, then dispute the lien as "not mine", then dispute the amount, then the date, etc. Only as a last resort would I dispute it as released. If you are successful in getting that lien off the report, that would be the best-case scenario. If all else fails, only then dispute the status as released.

    Best of luck
  3. bizwiz41

    bizwiz41 Well-Known Member

    Thanks, and boy that was quick!

    I think I have 30 days for the IRS to consider, and respond, on withdrawal request. I plan to wait that one out. I assume it looks "best" if withdrawn "as if never filed" (per IRS language!)

    But thanks for the ammo on disputing, I hope I don't have to go that angle.......
  4. lbrown59

    lbrown59 Well-Known Member

    I'd suspect its very much like 'paid' and 'unpaid' collections ... no difference as far as FICO goes.

    R I T E

    THE END ** *
  5. thickman66

    thickman66 Well-Known Member

    fico doesn't care whether it is paid, released, unreleased, ....It needs to be deleted to have an impact.

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