Posted 27 July 2011 - 11:34 AM
[quote name='montanarice' timestamp='1311749273' post='4507488']
Also, it seems states may not be too far behind in allowing the withdrawl of paid liens, just found this article from May for California:
Wyland Legislation to Help Taxpayers and Small Businesses Advances
FOR IMMEDIATE RELEASE: May 11, 2011
CONTACT: Julie Hooper @ 916·651·4038
SACRAMENTO, CA— Today, legislation authored by State Senator Mark Wyland (R-Carlsbad) and sponsored by Board of Equalization Member George Runner unanimously passed the Senate Governance and Finance Committee with bipartisan support.
Senate Bill 228 would allow the State Board of Equalization, the Franchise Tax Board or the State Controller to withdraw paid tax liens.
Under current law, California’s tax agencies can place a lien on a taxpayer’s property when the taxpayer is unable to fulfill their tax liability. The same taxing authorities can release a lien when a taxpayer pays off their outstanding obligation along with any additional interest and assessed late fees. However, a withdrawal is needed to remove the lien. Tax agencies do not have the statutory authority necessary to withdraw a tax lien, even if it was filed in error. Without a withdrawal, the lien affect a taxpayer’s credit score for up to ten years.
“It is difficult for an individual or business to get a loan if their credit report shows a tax lien. As a former small business owner, I know how important it is to be able to secure a line of credit.” said Wyland.
SB 228 would conform California’s tax lien withdrawal procedures to the federal procedures implemented by the Internal Revenue Service (IRS) 10 years ago.
“During this difficult economic time, we need to do everything we can to help businesses get a fresh start. This is a pro-consumer, pro- small business bill that will help thousands of Californians,” Wyland said.
I saw bill this six weeks ago in Googling "tax liens" and then could not find anything much about the bill after the date of the article you cite. So I called State Senator Wyland's office to see what the status was. (I am a California resident although he is not my Senator) A member of his staff told me that the bill died in committee in June. I don't have the link but I read a study of the bill by the "CBO like" office of the CA Senate online. It basically says the CA Franchise Tax Board was against it essentially because they see the tax lien staying on your CR as a "club" (my word) to make people pay there tax. They seem to believe that if people know they can get the lien removed before the 7 years are up, they will NOT pay their taxes in a timely manner. I think that they are wrong, I think that people would pay inn a MORE timely manner back taxes etc if they thought they could be free and clear lien wise... One more thing, I did give Wyland's staff member my email since they said might try again next year. I told them if more people had known about this bill, they might have helped out by sending support (emails, letters, phone calls) to Senators who were on the fence. (hello fellow CB'ers) So as they say, "wait until next year"!!!!