Manage Old Tax Liens on Your Credit Report Part 2
written by Credit-HQ Expert4. What do you do if you discover an old tax lien on your credit report and you can’t remember paying it? What process must you follow when examining it with the IRS?
It is possible to give the IRS a call. But in this situation it is best to get in touch with a tax expert in dealing with tax disagreements. Ask this expert to file a Freedom of Information Act application. This way the IRS Collection procedure will not be set in motion against the taxpayer.
If you don’t have proof of payment for an old tax lien you believe was settled what IRS process must you follow to investigate the matter?
You must get in touch with the IRS to confirm whether payment was made or not. A ten year statue of limitations for the taking in of tax exists. The ten years begins from the assessment of the tax. But due to a variety of exceptions and situations the statue period can be lengthened. It is best to ask an expert to handle such a situation.
6. How long does it take for the above to get sorted out?
In general, it should take approximately sixty to ninety days. A lien application before a request is thirty to ninety days.
7. If you are e.g. in the procedure of obtaining a mortgage how can you speed up matters with the IRS?
Go to IRS website www.irs.gov to get the phone number of your local Office of the Taxpayer Advocate. It is the purpose of the Taxpayer Advocate to rectify errors and delays in the bureaucratic procedure. This office is an autonomous branch of the IRS and provides a free service. The Taxpayer Advocate is very helpful because one person will deal with you rather than many.
8. What are the consumer tips for those who discover their credit files contain tax liens?
Don’t rush in to get in touch with the IRS. If you are not sure whether or not you paid tax liens, it is best to get expert advice. You could end up setting in motion an IRS procedure that will make your life difficult. If you are certain you have paid then it’s fairly simple to sort it out.
The tax liens will not come off your credit reports automatically when you pay. They could stay on the reports for as long as seven years. This is lawful and according to the Fair Credit Reporting Act.
If you let the IRS know you owe taxes they can file a lien in as short a time as tend days. You must sort out any notification of outstanding taxes as soon as you can. This will save you from severe credit report damage. This also goes if you have already filed tax liens. For those who cannot pay taxes go to GetIRSHelp.com for free information on how to deal with IRS dilemmas.
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