Tax liens

Discussion in 'Credit Talk' started by Shantel, Jun 5, 2001.

  1. Shantel

    Shantel Well-Known Member

    I have a friend who may be slapped with an IRS tax lien due to past due federal taxes. I don't really know anything about them besides that they are bad. But how bad? How do creditors view this? (i.e. is it as bad or worse than BK).

    Any info would be appreciated.

  2. Momof3

    Momof3 Well-Known Member

    Tax liens are listed in the public record section, I don't think they would be considered worse than BK, however they are not good either. Tell you friend that tax liens are different from regulars debts in regards to reporting, I think they can remain on your report for a long time and the 7 year reporting clock DOES NOT start until they lien is satisfied (paid).
  3. Shantel

    Shantel Well-Known Member

    Thanks Mom!
  4. breeze

    breeze Well-Known Member

    Unpaid tax liens have no time limit - they can stay on forever. Paid stay on for 7 years.

    Having been there, I would say if a person is facing this, go borrow the money to pay them before they take the lien.

    The main drawback to creditors is that the IRS can just take anything without any court procedures.

    Mine have been paid since 1996, they are treated like any other negative - as they age, they grow less important.

  5. Shantel

    Shantel Well-Known Member

    Good info Breeze....experience comments help...thanks!
  6. lucy

    lucy Well-Known Member

    Tell your friend to call the IRS IMMEDIATELY! Do not let them slap a tax lien on you. I had an employer back in 1994/95 who really screwed me with the IRS, I owed like $5000.00 in taxes because the employer refused to change my personal exemptions. It is a long story.

    Anyway, if you call the IRS, they will take a payment, as low as $10.00 a month, but pay something or fill out a hardship form. When I lost my job last year and was on unemployment I filled out a hardship form and managed to get them off my back.

    You have to keep up with them though, keep calling, sending money or whatever it takes. I still owe less than a hundred dollars from 1994, now I am working on 1995. The IRS is easy to work with as long as you do not ignore them, if you ignore them, they will file a lien. I have been successful in getting no liens for 7 years now. Tell your friend to call NOW!
  7. breeze

    breeze Well-Known Member

    I don't think it's just "Don't ignore them..."

    I bet you called them. I never ignored them, and they took out a lien. But they called me, I didn't call them.

  8. lucy

    lucy Well-Known Member

    Well, I have always called them, you've got that right. I wouldn't wait on them to call me, they'll just file a tax lien. I still suggest calling them immediately and the tax lien will not be placed. I have been dealing with this for 7 years.
  9. VJ

    VJ Well-Known Member

    7 years from when paid but one exception is in California,
    where I believe tax liens stay on 7 years from when filed,not paid.I also believe they are as bad or worse than a BK on the report.

  10. Marypc

    Marypc Well-Known Member

    Also, this is one of those negatives that is almost impossible to get off your report once it gets on there. It is one of the most easily verifiable debts there is, I know as I have one (filed 1993, paid 1996) on my reports. I have disputed it every way I can think of, and still it persists. I am hoping Junum can get it off. I agree with the other posters, tell your friend to do whatever she can to prevent it from being filed.

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