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IRS Lien Good or Bad???


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Hello,

 

I have an employer that accidently misrepresented my income. I now have a lien on me from the irs and state goverments for 36k and 9.5k respectively. The reported income was somewhere around 100k. I am worried that if I challenge this and it goes away (which it would) that my score may actually drop because now the companies see i make now money? Would it be smarter to continue to pull secured credit cards, then real credit cards, then remove the lien once i have the cards locked in?

 

I have a 657 and 652 score on credit karma im trying to get to perfect score asap. Also I have planned to incorporate 3 small secured bank loans a year for around 1,000usd. This loan would be a 1yr CD loan that would be paid back with weekly payments early in 4 months time. Tips thanks!

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Banks only see what you tell them regarding income unless they request a 4506-T. There must be a lot more to this story.

 

I'll leave it to repair experts for recommendations, but you do not want this to linger. The state tax lien could haunt you for a long time. Be diligent... don't let this go.

 

Welcome to CB.

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How did the employer misrepresent your income ? Are these liens because you filed incorrect tax returns ?

 

Tax Liens are a credit killer that can go on for 10 years or more if renewed. The smartest thing you can do IMHO is get those Tax Liens cleared up ASAP. Your not going to get unsecured cards as long as these Liens are on your credit reports.

 

Do you still work for this employer ?

 

I just don't fully understand how this happened.

Edited by Vettecor
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Tax liens don't just happen from an employer misstating income. They happen when the IRS gets the income info from the employer and it doesn't match your tax return. They then send a letter adjusting your return and assessing additional tax. They include instructions on what to do if it is in error. If you ignore it the assessment becomes effective and if you ignore it some more they will put a lien on you. This normally takes quite a bit of time and ignoring many IRS letters.

 

Get it taken care of. Tax liens are bad, bad credit news and is about the worst thing on a report except for maybe a bk.

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ok heres the story I can promise you this lien has nothing to do with something i did.

 

Employer misrepresented income as you guys stated. (100k)

 

I reported actual income (approx 10k)

 

I went to prison

 

Lien popped up

 

Employer went into non-phone answering ghost.

 

IRS was contacted and I was verbally told they would take care of it. Lady could tell I was legit I guess. Im very honest and forthcoming person.

 

 

 

This all being said I called the irs a few days ago. They said there systems are locked until the 5th of jan. I know these things will vanish once they get the books straight. It has been in dispute process for a few days. I'm confident it will be overturned as its not me. Also I'm confident because I just had a $380 Fine from a Vegas court that i never went to or signed any docs removed after I challenged that. If I can get that taken down from a court (in only 3 days nonetheless) then im absolutely certain this will be cleared asap.

 

 

Anyway hope this helps answer ppls questions. The info I gained so far is just get this crap off my file. Which is in process so thats good. Will keep forum posted.

 

As I said I already had a success in just 72hours time getting a $380 frivolous las vegas court fee cleared from file.

 

P.S. If credit karma score are not legit then where can i get real legit up to the minute reports from? Even if i have to pay?

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ok heres the story I can promise you this lien has nothing to do with something i did.

 

Employer misrepresented income as you guys stated. (100k)

 

I reported actual income (approx 10k)

 

I went to prison

 

Lien popped up

 

 

Anyway hope this helps answer ppls questions. The info I gained so far is just get this crap off my file. Which is in process so thats good. Will keep forum posted.

 

 

Well, that explains not getting the IRS letters. Liens just don't "pop up" but if you are in prison you might not get their mail.

 

Good luck with the IRS. They are generally very difficult to interact with over the phone. You might make an appointment to go into a local office where you can get an actual person to go through things and help straighten things out. The IRS tends to follow procedures to the letter. Their web site outlines how the collection division operates and how to get them to reconsider assessments. But it can be complex. Seeing them in person might be your best bet. You might also inquire with your probation officer (if you are on probation). They may have a good idea how to deal with IRS issues. I suspect it's not uncommon for them to run into.

Edited by cashnocredit
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i do not have a po i finished all time and am off all paper im pretty certain though since the employer fked up the numbers i can just keep telling the same story over a million times nicely and eventually someone will get sick of me calling. I tend to map out the whole network when things start to get crazy like that from the very beginning but im 99.9% sure ill be just fine bcs all the horror story irs type examples you are giving are for people that have legit liens but i do not my lien is frivolous because the reported income was also frivolous. The second this comes across anyones desk with a oz of motivation they are going to investigate and kill the lien.

 

Also like I said there "system is down" until the 5th. They only have 30 days to respond or it auto clears? IF thats the case i may get very lucky from that end too.

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i do not have a po i finished all time and am off all paper im pretty certain though since the employer fked up the numbers i can just keep telling the same story over a million times nicely and eventually someone will get sick of me calling. I tend to map out the whole network when things start to get crazy like that from the very beginning but im 99.9% sure ill be just fine bcs all the horror story irs type examples you are giving are for people that have legit liens but i do not my lien is frivolous because the reported income was also frivolous. The second this comes across anyones desk with a oz of motivation they are going to investigate and kill the lien.

 

Also like I said there "system is down" until the 5th. They only have 30 days to respond or it auto clears? IF thats the case i may get very lucky from that end too.

 

IRS liens don't "autoclear" Something they sometimes do is file a lien that self releases in 30 days. The IRS does that to get your attention. I had one that did that so I'm speaking from experience. The problem with that is that a released lien is just as bad on a credit report as the original lien. At least as far as credit scores go. You will need to get a "withdrawal" and that will remove a released lien from credit reports.

 

Liens are public records as are lien releases and withdrawals. They all get recorded by the county and they can all be looked up forever but recording a withdrawal is a way of saying the original lien should be considered invalid. This allows credit reporting agencies to remove them but records of all this remain and can be looked up by anyone with an internet connection in most places.

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Tax Liens are a credit killer that can go on for 10 years or more if renewed. The smartest thing you can do IMHO is get those Tax Liens cleared up ASAP. Your not going to get unsecured cards as long as these Liens are on your credit reports.

 

This is incorrect , the irs can only collect from 10 yrs when the taxes were assessed. If you file your 2004 taxes April 2005 and they accept your return in May , the 10 yr clock starts. It is not renewable unless you consent to give them more time to collect , ie. so they don't go after your assets. I think you may be confused with judgements.

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There is no set reporting period for unpaid tax liens on your credit report.

 

If you leave your tax lien unpaid, it can stick around on your credit report forever. Of course, that doesn't happen. The credit bureaus will begrudgingly remove those old, unpaid tax liens after about 15 years. Because the time frame is so long, you'll have to keep a close eye on your tax liens. They're likely to get overlooked when removal time rolls around. Yes, I know its done via computer, but that computer system seems to make heinous mistakes on a regular basis, so betting the farm that the credit bureaus will remove your tax lien after a pre-set period of time isn't wise.

Edited by Vettecor
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The Ten-Year Statute of Limitations for Tax Debt

 

Don't get the 10-year statute of limitations for tax debt confused with the credit reporting period for tax liens. IThe 10-year statute of limitations for tax debt refers to the amount of time the IRS has to enforce its lien (i.e. seize your assets). It has no bearing whatsoever on credit reporting periods and how long a paid or unpaid tax lien will remain on your credit report.

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ok heres the story I can promise you this lien has nothing to do with something i did.

 

Employer misrepresented income as you guys stated. (100k)

 

I reported actual income (approx 10k)

 

I went to prison

 

Lien popped up

 

Employer went into non-phone answering ghost.

 

IRS was contacted and I was verbally told they would take care of it. Lady could tell I was legit I guess. Im very honest and forthcoming person.

 

 

 

This all being said I called the irs a few days ago. They said there systems are locked until the 5th of jan. I know these things will vanish once they get the books straight. It has been in dispute process for a few days. I'm confident it will be overturned as its not me. Also I'm confident because I just had a $380 Fine from a Vegas court that i never went to or signed any docs removed after I challenged that. If I can get that taken down from a court (in only 3 days nonetheless) then im absolutely certain this will be cleared asap.

 

 

Anyway hope this helps answer ppls questions. The info I gained so far is just get this crap off my file. Which is in process so thats good. Will keep forum posted.

 

As I said I already had a success in just 72hours time getting a $380 frivolous las vegas court fee cleared from file.

 

P.S. If credit karma score are not legit then where can i get real legit up to the minute reports from? Even if i have to pay?

Did you go to prison because of the IRS problem, or was it something else?

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Thanks for all the love everyone @credit boards. And a big shout out to Uncle Sam! Thumbs up if you love him as much as me! <3

 

to answer you question no i was busted in a east coast mmj sting op in which the state fabricated much illegal evidence against me and buried me for 5 years. Hell they could burry me again if they want they have that nice frame around my face from there illegal evidence and news stories so nice and shiny that frame.. they can pull the trigger on me at any minute if they wanted.

 

bastards.. You too Uncle sam!

Edited by IamWorth30billion
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The Ten-Year Statute of Limitations for Tax Debt

 

Don't get the 10-year statute of limitations for tax debt confused with the credit reporting period for tax liens. IThe 10-year statute of limitations for tax debt refers to the amount of time the IRS has to enforce its lien (i.e. seize your assets). It has no bearing whatsoever on credit reporting periods and how long a paid or unpaid tax lien credit report.

Agreed, but after 10 yrs you no longer owe it and it can be more easily disputed.

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