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Mervynsb

New IRS Policy 04/02/2011

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Awesome - got notice of lien withdrawal today. They gave me a facsimile of the withdrawal, and noted they had filed it with both the county recorder and with the three CRA's, and that they would be sending me form 10916 in a separate mailing. It took 3 weeks from the day they received my request until I got the withdrawal notification. It felt like longer, but I have to say, that's not bad at all - they handled it very quickly.

 

Should I go ahead and dispute with the CRA's, or wait for the recorder of deeds to withdraw it first?

 

Fantastic news for me - a huge relief.

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Awesome - got notice of lien withdrawal today. They gave me a facsimile of the withdrawal, and noted they had filed it with both the county recorder and with the three CRA's, and that they would be sending me form 10916 in a separate mailing. It took 3 weeks from the day they received my request until I got the withdrawal notification. It felt like longer, but I have to say, that's not bad at all - they handled it very quickly.

 

Should I go ahead and dispute with the CRA's, or wait for the recorder of deeds to withdraw it first?

 

Fantastic news for me - a huge relief.

 

 

When I got my withdrawal from the IRS my letter also said what yours did. Nevertheless I sent out 3 letters to the CRA's the next day anyway, CMRRR. I thought it was a good idea even if the IRS was going to let them know. I sent the letter from the IRS and the withdrawal form. How they fell off is contained earlier in this thread, they fell off in a piecemeal fashion for sure.

 

I got this IRS lien and a couple of other state liens off my CR's by sheer luck and persistence. Watch out for EX to send you a reply to your dispute by asking for you to send them copies of you DL, SS card, bank statement (with only the address visible) or a utility bill with current address. They all should fall off in total in 4 weeks, any longer and they are just being extra dumb to you.

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Today, February 1, 2012, I received a letter in response to my application (received by the IRS on Nov 14, 2011) for a withdrawal of the Notice of Federal Tax Lien.

 

"Your application has been denied because the provisions for withdrawal, as defined in Internal Revenue Code section 6323(j) have not been met...."

 

I have had an installment agreement with the IRS since October 2010. The agreement was converted to a Direct Debit Installment Agreement in August 2011. All the installments have been paid as agreed. I cannot describe in words how angry and disappointed I feel.

 

Next stop: The Office of the Taxpayer Advocate

 

The IRS Advisory Group in Chicago signed the RR for my Form 12277 today.

 

Fingers crossed that the process proceeds smoothly and quickly.

 

I requested that the IRS notify the CRAs of the withdrawal. My questions are, will the CRAs act on the information received from the IRS and delete the PR? Or does receiving the information from the IRS prompt the CRAs to verify the lien withdrawal via their source of information, and then delete? Or will I end up having to dispute with the CRAs myself to have the PR deleted?

 

My first goal was to have the PR removed from my CRs. Now I need to find out if I can qualify for an Offer in Compromise or abatement of some of the fines/ penalties. Should I attempt this myself or do I need professional help?

 

Opinions appreciated :)

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Today, February 1, 2012, I received a letter in response to my application (received by the IRS on Nov 14, 2011) for a withdrawal of the Notice of Federal Tax Lien.

 

"Your application has been denied because the provisions for withdrawal, as defined in Internal Revenue Code section 6323(j) have not been met...."

 

I have had an installment agreement with the IRS since October 2010. The agreement was converted to a Direct Debit Installment Agreement in August 2011. All the installments have been paid as agreed. I cannot describe in words how angry and disappointed I feel.

 

Next stop: The Office of the Taxpayer Advocate

 

The IRS Advisory Group in Chicago signed the RR for my Form 12277 today.

 

Fingers crossed that the process proceeds smoothly and quickly.

 

I requested that the IRS notify the CRAs of the withdrawal. My questions are, will the CRAs act on the information received from the IRS and delete the PR? Or does receiving the information from the IRS prompt the CRAs to verify the lien withdrawal via their source of information, and then delete? Or will I end up having to dispute with the CRAs myself to have the PR deleted?

 

My first goal was to have the PR removed from my CRs. Now I need to find out if I can qualify for an Offer in Compromise or abatement of some of the fines/ penalties. Should I attempt this myself or do I need professional help?

 

Opinions appreciated :)

 

Did they specify what, in detail, was out of line with your request? The letter I got contained the name and phone number of the agent to contact with inquiries - so if they didn't give you any details, check your letter for something similar and give them a call.

 

As I understand it, you have to owe them less than $25000, and your agreement must be one that will pay them in full. Did you meet those guidelines?

 

Don't give up - call them and find out what the issue is.

Edited by SomeGuyInCA

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As soon as I got the notice of lien release, I decided to conduct a little experiment. I disputed online with EQ and EX, and I left TU alone. TU picked up the change today (right away) and has deleted the PR from my report. EQ and EX both have the dispute pending. I'll post back with my results.

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As soon as I got the notice of lien release, I decided to conduct a little experiment. I disputed online with EQ and EX, and I left TU alone. TU picked up the change today (right away) and has deleted the PR from my report. EQ and EX both have the dispute pending. I'll post back with my results.

 

And Experian has already responded with 'verification'. It amazes me they do this sort of stuff - they did it so quickly that there is absolutely no way that they could have verified the information - they clearly did NOT send someone to the courhouse, because if they had, they would have certainly not have 'verified'.

 

I called them and they asked me to send them a copy of the lien withdrawal - which I will do. But it seems pretty much ridiculous to have to jump through these hoops. The person I spoke to at EX, who is in the US, was absolutely zero help at all and seemed completely confused.

 

Any suggestions one what to include in the written dispute?

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Today, February 1, 2012, I received a letter in response to my application (received by the IRS on Nov 14, 2011) for a withdrawal of the Notice of Federal Tax Lien.

 

"Your application has been denied because the provisions for withdrawal, as defined in Internal Revenue Code section 6323(j) have not been met...."

 

I have had an installment agreement with the IRS since October 2010. The agreement was converted to a Direct Debit Installment Agreement in August 2011. All the installments have been paid as agreed. I cannot describe in words how angry and disappointed I feel.

 

Next stop: The Office of the Taxpayer Advocate

 

The IRS Advisory Group in Chicago signed the RR for my Form 12277 today.

 

Fingers crossed that the process proceeds smoothly and quickly.

 

I requested that the IRS notify the CRAs of the withdrawal. My questions are, will the CRAs act on the information received from the IRS and delete the PR? Or does receiving the information from the IRS prompt the CRAs to verify the lien withdrawal via their source of information, and then delete? Or will I end up having to dispute with the CRAs myself to have the PR deleted?

 

My first goal was to have the PR removed from my CRs. Now I need to find out if I can qualify for an Offer in Compromise or abatement of some of the fines/ penalties. Should I attempt this myself or do I need professional help?

 

Opinions appreciated :)

 

Did they specify what, in detail, was out of line with your request? The letter I got contained the name and phone number of the agent to contact with inquiries - so if they didn't give you any details, check your letter for something similar and give them a call.

 

As I understand it, you have to owe them less than $25000, and your agreement must be one that will pay them in full. Did you meet those guidelines?

 

Don't give up - call them and find out what the issue is.

Less that $25K, agreement would pay them in full. I called the guy who sent me the letter today. He rejected my request because he did not find tax returns for 2002 and 2004. They were not requested by the revenue agent who set up my installment agreement; I did file all the returns they did say would be required. So I can appeal now, or file the returns for those 2 years, hope I don't owe anything because if I do and can't pay what's due plus the fines and the interest with the return, I will have violated my installment agreement and be F***ed anyway. BTW his opinion is I do not have a valid installment agreement now because those returns were not filed.

 

I will prepare the returns and see if I can afford to file them. If not I will appeal. If that doesn't work I will try to go for 'currently not collectible' status. I have a moderately low income and outrageous medical expenses resulting from two chronic diseases. You don't have to tell me my attitude sucks, I know it does. And I know that my own actions caused my problems with the IRS. What a comforting thought that is. So if any of you self-righteous members want to come along and point out the obvious -- whatever floats your boat. Ciao.

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Today, February 1, 2012, I received a letter in response to my application (received by the IRS on Nov 14, 2011) for a withdrawal of the Notice of Federal Tax Lien.

 

"Your application has been denied because the provisions for withdrawal, as defined in Internal Revenue Code section 6323(j) have not been met...."

 

I have had an installment agreement with the IRS since October 2010. The agreement was converted to a Direct Debit Installment Agreement in August 2011. All the installments have been paid as agreed. I cannot describe in words how angry and disappointed I feel.

 

Next stop: The Office of the Taxpayer Advocate

 

The IRS Advisory Group in Chicago signed the RR for my Form 12277 today.

 

Fingers crossed that the process proceeds smoothly and quickly.

 

I requested that the IRS notify the CRAs of the withdrawal. My questions are, will the CRAs act on the information received from the IRS and delete the PR? Or does receiving the information from the IRS prompt the CRAs to verify the lien withdrawal via their source of information, and then delete? Or will I end up having to dispute with the CRAs myself to have the PR deleted?

 

My first goal was to have the PR removed from my CRs. Now I need to find out if I can qualify for an Offer in Compromise or abatement of some of the fines/ penalties. Should I attempt this myself or do I need professional help?

 

Opinions appreciated :)

 

Did they specify what, in detail, was out of line with your request? The letter I got contained the name and phone number of the agent to contact with inquiries - so if they didn't give you any details, check your letter for something similar and give them a call.

 

As I understand it, you have to owe them less than $25000, and your agreement must be one that will pay them in full. Did you meet those guidelines?

 

Don't give up - call them and find out what the issue is.

Less that $25K, agreement would pay them in full. I called the guy who sent me the letter today. He rejected my request because he did not find tax returns for 2002 and 2004. They were not requested by the revenue agent who set up my installment agreement; I did file all the returns they did say would be required. So I can appeal now, or file the returns for those 2 years, hope I don't owe anything because if I do and can't pay what's due plus the fines and the interest with the return, I will have violated my installment agreement and be F***ed anyway. BTW his opinion is I do not have a valid installment agreement now because those returns were not filed.

 

I will prepare the returns and see if I can afford to file them. If not I will appeal. If that doesn't work I will try to go for 'currently not collectible' status. I have a moderately low income and outrageous medical expenses resulting from two chronic diseases. You don't have to tell me my attitude sucks, I know it does. And I know that my own actions caused my problems with the IRS. What a comforting thought that is. So if any of you self-righteous members want to come along and point out the obvious -- whatever floats your boat. Ciao.

 

I don't think that anyone here is going to knock you for attitude, or for owing taxes. It doesn't even matter why - sometimes it happens out of fear, sometimes out of negligence, sometimes out of a misunderstanding of tax code, sometimes out of error. In my opinion, the IRS could do better to be less hurtful and damaging to the people of our nation; yes we need to pay our taxes, but there is no value to be gained by grinding people into the dirt, which is all too often the effect of heavy handed IRS policies.

 

Tax liens are, I am convinced, one of those policies. They provide little real value in the collection process for the vast majority of those cases where they are filed, especially for people who are in payment arrangements and who are insolvent at the time that the liens are filed. In those cases, all the liens really do is punish the taxpayer by destroying their credit rating and making it impossible for them to gain much forward momentum in their lives. Poor credit ratings make it difficult to rent, make financing of all sorts more expensive, and in many states will limit ones ability to advance career-wise. That translates directly into a lower probability that a consumer can pay the IRS back because it acts to reduce or limit the taxpayer's disposable income. And there is another more subtle effect that is far more unproductive for the IRS long term: By limiting a person's career advancement, it can also limit the IRS's future lifetime tax collections for the individual. So, on many levels, penalizing people who are paying their taxes as agreed - by placing them under the yoke of a tax lien - is just unecessarily harsh. In the end, it becomes more about punishment than anything else, and that was not the intent of the congressionally mandated authority which allows the IRS to file liens.

 

I would certainly appeal. The IRS provisions of that same section the agent quoted allow the IRS to remove liens when it is in the interest of the taxpayer and the IRS. Frankly, I can't see how anyone who really thinks about it can conclude that it is in the interest of the IRS to destroy people and their families. When someone is paying their taxes as agreed (and YOU ARE - you are fulfilling the agreement that they also signed and agreed to), the lien serves no purpose at all. That said, it really is pot luck - it depends greatly on the specific agent who reviews your case. The laws aren't intended to destroy and harm Americans, but in the hands of someone so inclined (or simply disinclined to care) they can. In my opinion, the agent who reviewed your case should not have had the authority to conclude that you are not meeting your obligations, since the IRS specifically called out what those obligations are in the collections document that you signed, and you have performed according to those expectations.

 

FYI, although I have had one lien removed, I still have another I am paying. My credit scores are in the 700's, I have a debt to income ratio of about 16%, and I have low utilization on my revolving credit. I have no derogatory remarks on my reports. Yet I cannot get a prime credit card to save my life; the presence of the lien is enough to destroy any and all chances. So I feel for you - I know what it is like. I and my family suffer every day under this yoke, which as I have repeated ad nauseum, serves no useful purpose other than to inflict hardship; I was paying the obligation long before they filed a second lien.

 

Anyway, good luck - let us know how the appeal goes.

Edited by SomeGuyInCA

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The amout I owe is over 25K. I dont know if the IRS will release the lien or not, but Im going to give it a try.

Has anyone had one released over 25K?

 

 

 

The guidelines as posted in the fresh start program announcement require that the amount be less than $25000. That said, if you can substantively prove it is in the best interest of the IRS, you might succeed. I wouldn't be too optimistic, however.

 

FYI, you could always try writing the commissioner of the IRS directly - they have the authority to withdraw liens if you can convince them it is in the best interest of both parties.

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This is my first post. I read a few weeks ago about having a lien withdrawn and sent in the paperwork right away. Here's the letter I got today.

 

Dear xxxxxxx,

 

Your request for withdrawal of the Notice of Federal Tax Lien, Serial Number xxxxxxxxx, recorded with the County Clerk of xxxxxxx County, xxxxxx on 01/xx/2008 has been received and reviewed. We are sorry, but your request cannot be granted because of the requisite conditions described in Section 6323(j) of teh Internal Revenue Code exist in your case for the following reasons.

 

You were not in compliance on filing returns timely, nor making estimated tax payments timely.

No documentation provided to demonstrate the lien withdrawal would be in the best interest of the government.

 

If you have questions, please contact me at telephone number xxxxxxxxxxx, fax number xxxxxxxxxx or by mail at the IRS xxxxxxxx.

 

If you wish to appeal this determination, contact Advisory Group Manager xxxxxxxxxxx at xxxxxxxxxxx. A Collection appeal request form (Form 9423), and a description of your collection appeal rights (Publication 1660) are enclosed.

 

Sincerely,

xxxxxxxxxxx

 

Okay, it's true that I did not file all my tax returns timely, but I am all caught up. The lien, which was just over $30k was paid in full and released at the around Oct/Nov 2011. I still owe an additional $15k with some of the other taxes I filed and I am starting a payment plan next month (still waiting on paperwork). I'm really actually confused as to why I was denied. I didn't realize that I had to provide documentation to prove it's in the best interest of the state to remove this released lien. I just thought was something they were doing for people who had paid them. Obviously, I intend to appeal, but need help in knowing what to do. Advice please? I'm very new to this process.

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CONTINUED - REFERRING TO MY DENIAL LETTER.

In reading the "Revision to Interim Guidance for Withdrawal of Notice of Federal Tax Lien after Release" from Jan 2012: http://www.irs.gov/pub/foia/ig/sbse/sbse-05-0112-008.pdf, I find (partial posting from the link that applies to my situation):

 

Post-release Lien Withdrawals Under IRC 6323(j)(1)(D)

A request for withdrawal of a NFTL under IRC 6323(j)(1)(D) where the underlying lien has been released will generally be granted if the following conditions apply:

• The taxpayer requests the withdrawal in writing; Note: Form 12277, Application for Withdrawal of Filed Notice of Federal Tax Lien, is the preferred format for the taxpayer’s request; however, any written request that provides sufficient information may by used for processing (see IRM 5.12.3.32).

• The taxpayer fully satisfied the liabilities on the NFTL;

• A certificate of release was issued; and

• The taxpayer is in compliance with filing requirements.

 

For purposes of this memorandum, “fully satisfied” includes:

• Tax liability was fully resolved by payment or credit offset;

• Most circumstances where the tax assessment was abated because the taxpayer is no longer liable for the tax (e.g., amended return filed, reconsideration of additional assessment, innocent spouse determination, or judicial ruling);

 

For purposes of this memorandum, “in compliance with filing requirements” includes:

• All required Individual Master File (IMF) and Business Master File (BMF) returns, including information returns, for the prior three years have been filed; and

• Current Estimated Tax Payments and Federal Tax Deposits (FTDs) have been paid.

 

The letter I got from the IRS states "you WERE not in compliance on filing returns timely, nor making estimated tax payments timely". What's odd about this wording is that above "in compliance" says all required returns for the prior three years have been filed and I meet that requirement. I am currently in compliance as all my taxes have been filed. So, how can the IRS say I wasn't in compliance (past tense) as though that would keep me from being currently in compliance?

 

While I do owe tax (from another year) even though my lien is paid and released, I am in process to start paying what I owe. Should this keep me from being in compliance when payment arrangements are made and first payment is already set? My letter doesn't say anything about that.

 

I'm very confused. It seems that the person that reviewed my request for withdrawal hasn't read the memo from Jan 2012.

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CONTINUED - REFERRING TO MY DENIAL LETTER.

In reading the "Revision to Interim Guidance for Withdrawal of Notice of Federal Tax Lien after Release" from Jan 2012: http://www.irs.gov/p...05-0112-008.pdf, I find (partial posting from the link that applies to my situation):

 

Post-release Lien Withdrawals Under IRC 6323(j)(1)(D)

A request for withdrawal of a NFTL under IRC 6323(j)(1)(D) where the underlying lien has been released will generally be granted if the following conditions apply:

• The taxpayer requests the withdrawal in writing; Note: Form 12277, Application for Withdrawal of Filed Notice of Federal Tax Lien, is the preferred format for the taxpayer's request; however, any written request that provides sufficient information may by used for processing (see IRM 5.12.3.32).

• The taxpayer fully satisfied the liabilities on the NFTL;

• A certificate of release was issued; and

• The taxpayer is in compliance with filing requirements.

 

For purposes of this memorandum, "fully satisfied" includes:

• Tax liability was fully resolved by payment or credit offset;

• Most circumstances where the tax assessment was abated because the taxpayer is no longer liable for the tax (e.g., amended return filed, reconsideration of additional assessment, innocent spouse determination, or judicial ruling);

 

For purposes of this memorandum, "in compliance with filing requirements" includes:

• All required Individual Master File (IMF) and Business Master File (BMF) returns, including information returns, for the prior three years have been filed; and

• Current Estimated Tax Payments and Federal Tax Deposits (FTDs) have been paid.

 

The letter I got from the IRS states "you WERE not in compliance on filing returns timely, nor making estimated tax payments timely". What's odd about this wording is that above "in compliance" says all required returns for the prior three years have been filed and I meet that requirement. I am currently in compliance as all my taxes have been filed. So, how can the IRS say I wasn't in compliance (past tense) as though that would keep me from being currently in compliance?

 

While I do owe tax (from another year) even though my lien is paid and released, I am in process to start paying what I owe. Should this keep me from being in compliance when payment arrangements are made and first payment is already set? My letter doesn't say anything about that.

 

I'm very confused. It seems that the person that reviewed my request for withdrawal hasn't read the memo from Jan 2012.

 

Are the taxes you now owe from this year, or from any time in the past three years? If you owe some balance that is known to be due, and that outstanding balance is not currently in collection through an installment agreement, I can see why they might have refused you. Whether or not that is actually in accordance with the regulation or not I can't really say. What years are your taxes now due (and not in payment) for?

 

 

And yes, it is certainly possible that the individual agent who reviewed your case doesn't fully understand the regulations; that's why there is an appeals process.

 

Please let us know how the appeal works out!

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Are the taxes you now owe from this year, or from any time in the past three years? If you owe some balance that is known to be due, and that outstanding balance is not currently in collection through an installment agreement, I can see why they might have refused you. Whether or not that is actually in accordance with the regulation or not I can't really say. What years are your taxes now due (and not in payment) for?

 

 

And yes, it is certainly possible that the individual agent who reviewed your case doesn't fully understand the regulations; that's why there is an appeals process.

 

Please let us know how the appeal works out!

 

The taxes I owe are from 2006. And according to the IRS, I am in a payment plan (per discussion when I set it up). She said all collection action is stopped and a payment plan is set up and will start March 15. Like I said they are sending paperwork, but I was told that whether I have paperwork from them or not, I need to make sure I make the first payment March 15. The reason it took so long to set up a payment plan is I filed a several years all at once and also had a large return for one year. The large return went into audit and they required I send even more paperwork and it took a long time to get that done. Meanwhile, they were processing the other years returns as well. They promised any refund would go to taxes FIRST. Then, they screwed up & sent part of my return to an offset (Dept of Education - where I'm currently in a rehabilitation program) so I spend all these months after my lien was paid (since Oct) trying to get the offset back to pay towards taxes through an injured spouse since the year of the big return it was my husband's income making the refund technically his while the offset was mine. I didn't go into a payment plan then because I owed over $25k which required a lot of personal information about assets, etc. Once the offset was returned to the IRS, I owe $15k. When I received the letter showing that I owed the $15k, I set up the payment plan. But, they had already started a collection process against me somewhere between getting the offset back and sending me the letter.

 

I think because they tried to collect against me last year (just before the taxes were completely processed), there's an automatic collection happening when I'm not on top of things immediately or following up with them. I say this because last year while they were auditing my 2010 return and processing my late returns, my bank account was levied. I called and when they looked at it they said it shouldn't have happened because I was working with them and my returns were being processed so collections should have been on hold. The levy was removed the very next day, but I have had to call regularly during all these processes - like while the injured spouse was being processed and make sure it doesn't go into automatic collection again. I think that is what happened right after they finished getting the offset back because I got a letter immediately saying they were about to seize assets, etc. So, I called and got my payment plan set up. Personally, there has been a lot of mistakes made on their end in my process. They did fix them, but when you levy a bank account when it shouldn't have happened and you send refund money to an offset instead of paying the taxes, those are big mistakes to me (as you can imagine).

 

I was neglectful in the past, but I have been working for almost a year to get everything up to date and in order. I do think that the individual who processed my request doesn't understand that past non-compliance doesn't equate to "not in compliance" meaning not currently compliant. I think the person was referring to ALL past actions and not current taxes due in their statement. That's not to say they couldn't deny me for not having the 2006 taxes paid. I did read something else about those on a payment plan being able to apply for removal of lien after 3 payments, but that was for people who were paying on the lien itself. My lien is PAID IN FULL. How can people paying on a current lien have their lien withdrawn, but I can't get my withdrawn when it's paid? Something just doesn't seem right.

Edited by helpmewithcredit

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I got a letter about 5 months ago saying I owe $1,900 due to an error in my taxes from a few years ago. I thought they would just take my return this year and I would pay the remainder. However I got my return back which was like $1,666.

 

So my question is how long before they file a tax lien against me? I would prefer to hold off paying this in full after I buy a house about August but I would just pay it in full rather then entering into a payment plan.

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Are the taxes you now owe from this year, or from any time in the past three years? If you owe some balance that is known to be due, and that outstanding balance is not currently in collection through an installment agreement, I can see why they might have refused you. Whether or not that is actually in accordance with the regulation or not I can't really say. What years are your taxes now due (and not in payment) for?

 

 

And yes, it is certainly possible that the individual agent who reviewed your case doesn't fully understand the regulations; that's why there is an appeals process.

 

Please let us know how the appeal works out!

 

The taxes I owe are from 2006. And according to the IRS, I am in a payment plan (per discussion when I set it up). She said all collection action is stopped and a payment plan is set up and will start March 15. Like I said they are sending paperwork, but I was told that whether I have paperwork from them or not, I need to make sure I make the first payment March 15. The reason it took so long to set up a payment plan is I filed a several years all at once and also had a large return for one year. The large return went into audit and they required I send even more paperwork and it took a long time to get that done. Meanwhile, they were processing the other years returns as well. They promised any refund would go to taxes FIRST. Then, they screwed up & sent part of my return to an offset (Dept of Education - where I'm currently in a rehabilitation program) so I spend all these months after my lien was paid (since Oct) trying to get the offset back to pay towards taxes through an injured spouse since the year of the big return it was my husband's income making the refund technically his while the offset was mine. I didn't go into a payment plan then because I owed over $25k which required a lot of personal information about assets, etc. Once the offset was returned to the IRS, I owe $15k. When I received the letter showing that I owed the $15k, I set up the payment plan. But, they had already started a collection process against me somewhere between getting the offset back and sending me the letter.

 

I think because they tried to collect against me last year (just before the taxes were completely processed), there's an automatic collection happening when I'm not on top of things immediately or following up with them. I say this because last year while they were auditing my 2010 return and processing my late returns, my bank account was levied. I called and when they looked at it they said it shouldn't have happened because I was working with them and my returns were being processed so collections should have been on hold. The levy was removed the very next day, but I have had to call regularly during all these processes - like while the injured spouse was being processed and make sure it doesn't go into automatic collection again. I think that is what happened right after they finished getting the offset back because I got a letter immediately saying they were about to seize assets, etc. So, I called and got my payment plan set up. Personally, there has been a lot of mistakes made on their end in my process. They did fix them, but when you levy a bank account when it shouldn't have happened and you send refund money to an offset instead of paying the taxes, those are big mistakes to me (as you can imagine).

 

I was neglectful in the past, but I have been working for almost a year to get everything up to date and in order. I do think that the individual who processed my request doesn't understand that past non-compliance doesn't equate to "not in compliance" meaning not currently compliant. I think the person was referring to ALL past actions and not current taxes due in their statement. That's not to say they couldn't deny me for not having the 2006 taxes paid. I did read something else about those on a payment plan being able to apply for removal of lien after 3 payments, but that was for people who were paying on the lien itself. My lien is PAID IN FULL. How can people paying on a current lien have their lien withdrawn, but I can't get my withdrawn when it's paid? Something just doesn't seem right.

 

I would appeal it.

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I got a letter about 5 months ago saying I owe $1,900 due to an error in my taxes from a few years ago. I thought they would just take my return this year and I would pay the remainder. However I got my return back which was like $1,666.

 

So my question is how long before they file a tax lien against me? I would prefer to hold off paying this in full after I buy a house about August but I would just pay it in full rather then entering into a payment plan.

 

Based on what I've read, they are unlikely to file a lien against you unless there is a larger amount you owe. That said, I'm having a hard time understanding why you would want to mess around with this. You just got a refund amount that would almost entirely erase this debt, and given that it isn't an enormous amount anyway, why not take that step? Alternatively, an installment agreement would be easy for you and would be automatically approved if there is nothing else lurking. If you enter into one, you can still pay it off in a lump sum in August as you wish, and it won't report, but would prevent an adverse action from the IRS.

 

If you plan to buy a house, it would seem to me that the last thing you would want to be doing right now is engaging in any sort of risky behavior. Deliberately avoiding paying the IRS when you have many means available to do so is risky by definition. I would personally advise that you not play chicken with the IRS; just pay it.

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I would appeal it.

 

I do intend to, but I wanted to know if there is anything I've missed in the information before I move forward.

 

I just called the officer who denied my withdrawal and he seemed unaware of the "Revision to Interim Guidance for Withdrawal of Notice of Federal Tax Lien after Release" that I quoted from above (it is only a month old), but said his understanding of "in compliance" was that all 3 prior years of taxes were filed TIMELY (which mine were not). But, as I pointed out, the Revision never defines it that way. So, I have a call into his advisor (the next step) before I actually file the appeal paperwork. Then, I decided I would also fax over this Revision and asked that maybe we could resolve this with the original officer (if possible).

 

PRAYING!!!! :sorry::angel:

Edited by helpmewithcredit

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I didnt file my taxes for 3 years and even made a payment arrangment and broke it, then made one and stuck to it.

 

For that reason they would not remove it originally, but i did also check off the box that it would be in the best interest of both parties.

 

They called me to elaborate on that to which i said "Having better credit would enable better job opportunities which would make paying back my tax debt easier and faster" or something like that, which they accepted and withdrew.

 

Hope that maybe that will work for you too.

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I didnt file my taxes for 3 years and even made a payment arrangment and broke it, then made one and stuck to it.

 

For that reason they would not remove it originally, but i did also check off the box that it would be in the best interest of both parties.

 

They called me to elaborate on that to which i said "Having better credit would enable better job opportunities which would make paying back my tax debt easier and faster" or something like that, which they accepted and withdrew.

 

Hope that maybe that will work for you too.

 

I just talked to the advisor and he is going to consult with the officer I originally talked to and then the advisor will call me back (probably tomorrow). If my intepretation of the above memorandum is not accepted (and withdrawn), I will state just what you said above. I checked off it is in the best interest of the government to remove it, but didn't provide documentation to demonstrate that (per the letter). I'm hoping we don't have to get into that part, but maybe we will.

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Just wanted to provide a short update:

 

My lien was withdrawn by the IRS January 24. TU deleted it without me even having to ask. I disputed with both EX and EQ and both 'verified'. However, 2 or 3 days later EX deleted as well. That leaves EQ, which hasn't budged at all. I can't really blame them - it appears that at the time that I disputed it, the county recorder had not actually recorded the withdrawal. That leads me to believe that TU and EX deleted based upon the notice of withdrawal that the IRS filed with them. I assume that for whatever reason EQ does not respond to these... or at least did not in my case.

 

Although I am loathe to do it, I will now send a second dispute via snail mail to EQ with copies of the IRS withdrawal notice. Hopefully that will work.

 

Any other suggestions?

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I just talked to the advisor and he is going to consult with the officer I originally talked to and then the advisor will call me back (probably tomorrow). If my intepretation of the above memorandum is not accepted (and withdrawn), I will state just what you said above. I checked off it is in the best interest of the government to remove it, but didn't provide documentation to demonstrate that (per the letter). I'm hoping we don't have to get into that part, but maybe we will.

 

Got a message today that ours is being withdrawn. SO EXCITED!!!! :yahoo:Looks like my fax of the "Revision to Interim Guidance for Withdrawal of Notice of Federal Tax Lien" http://www.irs.gov/pub/foia/ig/sbse/sbse-05-0112-008.pdf to the original officer & discussion with both the officer and his group advisor about this was enough to convince them to withdraw. They said it will take about 10 days.

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