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APPROVED! - IRS Withdrawal of Filed Notice of Federal Tax Lien


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in 2012 I applied for a lien withdrawal and was denied. I later found lots of useful information on this board and today just received Form 10916 from the IRS in the mail. Woo-whooo!

 

 

Backstory: The IRS filed a lien in 2009 to include tax from tax years 2002, 2003, 2005, and 2007. I entered a payment plan in 2012 and converted it to auto-debit after learning of the withdrawal process. I sent in all of the paperwork and that request was denied. Reasons given were that the 2002 taxes had been self-released (past 10 year SOL and uncollectible) and that I was not in a repayment plan. Little did I realize that another requirement was to have filed the last three years tax returns, timely. I had not done that, but it wasn't cited as a reason.

 

In December of 2013, I found a few threads here on CB and read them all from beginning to end. I then completed the form again, requesting the withdrawal. I also sent a very personal cover letter detailing the troubles and what I had done to resolve and address my past tax problems. I included documentation to demonstrate that I was in the auto-pay plan and how much of the debt I had already paid. I also explained why I had been unable to pay the 2002 portion before it self-released. Lastly, I included a memorandum from the IRS that allows for the approval of the request via manager review and asked that such a review be conducted.

 

Four weeks later I followed up via phone to the Advisory for my area (I was terrified to call, but based on what I read, I bit the bullet) to find out the status. Called and talked to a very nice woman who told me that she had sent my paperwork to another department because I had checked both "open" and "released" on my request form. I explained to her the self released portion and indicated that is why I had checked that box. She immediately knew it would need manager review and told me to fax her the paperwork and she would get that going. She also gave me the number to contact the department that she send the paperwork to, so they would have a heads up. I did both and the department said they would forward the file back to the Advisory. This was the last week of January.

 

This past Friday, February 28, 2014 I got the letter from the IRS that request was approved. I almost fainted. Today I got the Form 10916.

 

Based on everything I read, my next step is to obtain certified copies from the City Register's office and send to the CRAs with a concise letter disputing the entry on my reports and requesting a deletion.

 

I checked online today and it the document hasn't been recorded yet.

 

Thanks, CB. I seriously could't have done it without the contributions from you all. I followed it diligently and am excited with the results. I hope my post can help someone in the future.

 

Success since returning to CB in November 2012

 

- Withdrawal of federal tax lien

- CMRE Medical collection deleted

- 12 late payments (each) on Sallie Mae Private loans

- Increase in credit lines on Wal-Mart, Chevron and PayPal credit cards totaling $1580 (nice utilization bump!)

- New Roaman's store credit card (another $750 available credit to help with utilization)

 

Baddies left

 

- Confirming Barclays UPromise card will report (they sent a letter confirming they would report the card, still waiting for it to appear. Every since Barclays took over the account, it disappeared from the reports and it is my highest limit and oldest open credit card.)

- Target - 1 -30 day late (called a CSR who agreed to remove it, still waiting for that to be reflected)

- Citicard - 1 30 and 1 60 day late (Have tried both GW and dispute, to no avail. Will come back to it)

 

Planning to buy an apartment (in NYC) in the next 12 months, so this has been extremely beneficial. Wooo-whooo! Can't wait to have the lien removed once and for all and see the impact to my scores.

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  • 3 weeks later...

@MsIndependent

Were you below the $25,000 amount when you requested withdrawal? What was the form # for the memorandum to attached? I'm currently @ $40,000 but have made 7 auto payments and was thinking about requesting withdrawal with the statement that it will boost my credit score and I can get approved for a loan to pay the balance out. Any thoughts or opinions would be greathly appreciated.

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@MsIndependent

Were you below the $25,000 amount when you requested withdrawal? What was the form # for the memorandum to attached? I'm currently @ $40,000 but have made 7 auto payments and was thinking about requesting withdrawal with the statement that it will boost my credit score and I can get approved for a loan to pay the balance out. Any thoughts or opinions would be greathly appreciated.

I think the new threshold is $50K

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@MsIndependent

Were you below the $25,000 amount when you requested withdrawal? What was the form # for the memorandum to attached? I'm currently @ $40,000 but have made 7 auto payments and was thinking about requesting withdrawal with the statement that it will boost my credit score and I can get approved for a loan to pay the balance out. Any thoughts or opinions would be greathly appreciated.

I think the new threshold is $50K

 

Do you have a link with this info? I still see 25k in the IRS sticky.

 

edit: Checked IRS website: 50k and you can get into an installment program. Got to be 25k or less to get the lien withdrawn.

Edited by Goose123
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Think i'm being an optimist. Question 11 on the 12277 form is "Reason for requesting withdrawal of the Notice of Federal Tax Lien"

 

the 4th and 5th boxes are these.

 

-Withdrawal will facilitate collection of the tax. (withdrawal means credit score goes up which means qualify for loan which mean paying it)
-The taxpayer, or the Taxpayer Advocate acting on behalf of the taxpayer, believes withdrawal is in the best interest of the taxpayer and the government. (withdrawal leads to the government getting paid which is good for all)

 

Eligibility Requirements are:

  • The current amount you owe must be $25,000 or less
  • If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting the lien withdrawal to be eligible
  • Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier
  • You must be in full compliance with other filing and payment requirements
  • You must have made three consecutive direct debit payments
  • You cannot have previously received a lien withdrawal for the same taxes unless the withdrawal was for an improper filing of the lien
  • You cannot have defaulted on your current, or any previous, direct debit installment agreement

The second bullet 'you MAY pay down...' to me implies that you can still apply, it may get rejected but who knows.

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Think i'm being an optimist. Question 11 on the 12277 form is "Reason for requesting withdrawal of the Notice of Federal Tax Lien"

 

the 4th and 5th boxes are these.

 

-Withdrawal will facilitate collection of the tax. (withdrawal means credit score goes up which means qualify for loan which mean paying it)

-The taxpayer, or the Taxpayer Advocate acting on behalf of the taxpayer, believes withdrawal is in the best interest of the taxpayer and the government. (withdrawal leads to the government getting paid which is good for all)

 

Eligibility Requirements are:

  • The current amount you owe must be $25,000 or less
  • If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting the lien withdrawal to be eligible
  • Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier
  • You must be in full compliance with other filing and payment requirements
  • You must have made three consecutive direct debit payments
  • You cannot have previously received a lien withdrawal for the same taxes unless the withdrawal was for an improper filing of the lien
  • You cannot have defaulted on your current, or any previous, direct debit installment agreement

The second bullet 'you MAY pay down...' to me implies that you can still apply, it may get rejected but who knows.

Eh. Give it a try, I say. I applied for a lien withdrawal and was intially told no -- based on the fact that I paid a settlement rather than the full $21K owed -- but my request was sent to a special reviewer and it was approved. Lien withdrawn! So I believe they have discretion. Just make sure to state your case well in the section where they ask the reason for the withdrawal request.

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