Can State Remove Tax Lien From Credit Report Early?

Comments(12)

• 
  tinman17557th September, 2004

  Once it is paid, it usually states paid or statisfied. After so long you can write and ask it to be removed from your credit report.
  
  Lori
  [addsig]

• 
  JohnMichael7th September, 2004

  TAX LIENS: Unpaid city, county, state and federal tax liens are especially harmful and can remain on your credit report indefinitely. Unpaid tax liens are sometimes removed after 15 years although the Fair Credit Reporting Act does not establish an expiration date for these records. Paid tax liens will remain on your credit report for 7 years from the paid date
  
  There are two ways to get a lien removed: First is payment in full of the tax, penalty and interest that has accrued on the debt or full payment based upon a settlement agreement. Once the outstanding tax, penalty and interest have been paid, the lien will be removed. However, the lien will still be available on the public record and the lien will be listed as "withdrawn."
  
  The second way is to prove to the Tax Commission that the lien was issued in error. If this is the case, the public record will show that the lien was issued in error and "withdrawn." You must provide documentation from the taxing authority stating the lien was wrongly filed and should be removed from your credit history. But credit bureaus won't delete a released lien - one that was paid, either at the full or reduced amount - from your credit report. When you pay the lien, it will be updated on your credit report to reflect that it was released. The lien will remain on the credit report seven years from the filing date. The best thing to do in that case is to add a brief statement to your credit report giving your side of the story. That statement then becomes part of your credit report.
  
  Credit reporting agencies have access to the county records and state liens frequently are shown on credit reports. A state tax lien will likely prevent a person from selling or refinancing property and may adversely affect other attempts to acquire credit. Even once the tax lien is "satisfied," it will still be reflected on credit reports for years. A "withdrawn" lien will still appear on your credit report, but only reflects that a tax lien was filed in error.
  
  There is a difference between a tax lien filed in error and one that was "released." Credit bureaus will delete from your credit report tax liens filed in error

• 
  epb23rd July, 2005

  I have a unique problem. i think.
  A TAX LIEN has been placed on my credit report.
  HOWEVER. my taxes for that year were not filed. they now have been filed and i do not owe the state any taxes.
  can i petition the tax commision to say the lien was placed in error????
  
  thanks in advance for your input.

• 
  jjetts43rd August, 2005

  yes

• 
  Eric527th July, 2005

  A mortgage broker told me it would take 2 months for a loan on a property that was sold so I would guess something like that here.

• 
  cygnus31st July, 2005

  Also be aware...if you have high balances on those cards and pay them off all at once...one or more of those banks may close your account without warning. Just something to consider if you have plans for those cards after the big payout.

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  vguess996th August, 2005

  I wonder why you need to raise your score much higher than 720??? at that level, you will pretty much qualify for any loan... is there something behide it?
  
  If i were you, i wouldnt worry so much about paying off all my debt unless I have a lot more money than just the proceeds of the rehab. Instead, I will pay each debt down to about half and use the rest of the money for my next deal. after the next deal, you keep paying the debt down and repeat the process until it is completely eliminated.

• 
  studlee27th July, 2005

  I think the best way for the card to affect your credit score is length of time. The extra credit may help you keep from maxing it out and that may help a little too.
  Hopefully the CA did not put it on your credit reports. If they did put it on your credit reports then yes it will affect your credit scores.

• 
  d_random27th July, 2005

  You may have lost your chance to keep your credit report clean. You should have requested a letter (from the collection agency) stating that the collection agency would not report the delinquency in exchange for your payment. But since the amount is so small, hopefully they will not think it worth the time to report it.

• 
  ROBERTOP28th July, 2005

  Thank you for precious advice and time to advise me,
  Thanks again !

• 
  d_random28th July, 2005

  Glad to help!
  If you have any agreements with CC companies or collection agency make sure to get it in writing.

• 
  vguess996th August, 2005

  Nicole, you should contact the hospital and your insurance co and request a letter that you can send to the reporting agencies...
  
  I had a motgage co reoprt a single loan twice. it was only with a letter from the mortgage that reporting agencies agreed to remove the info.