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Old 08-22-2009, 08:34 AM
 
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Default IRS.......If u owe irs and make regular payments to them do they put a lien on your credit report......

wondering if u owe irs do they automatically put a lien on you....I make regular monthly payments to them.......thanks
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Old 08-25-2009, 06:31 AM
 
Location: Baltimore
1,749 posts, read 4,339,917 times
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Quote:
Originally Posted by deeds View Post
wondering if u owe irs do they automatically put a lien on you....I make regular monthly payments to them.......thanks
I can't comment for sure for the IRS. I used to work for state government, and in that case it would depend on the amount of the liability and the length of the payment terms. I suspect the IRS has similar procedures. For a relatively small liability that will be satisfied within a short time (usually less than a year) a lien may not be filed, as long as you stay current on the payments and file and pay all subsequent returns on time.

Call them and ask.
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Old 08-25-2009, 06:48 AM
 
Location: Hampton Roads, Virginia
1,123 posts, read 3,438,127 times
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From experience I know that the IRS put a lien on our credit report 1 year AFTER we started making payments thru a garnishment. Up until that time nothing ever showed up.
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Old 08-25-2009, 07:12 AM
 
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It totally depends on the amount of money owed and the payment history. Around $5,000 it starts to become a requirement.

If they threaten and you have an existing timely installment agreement, and you cannot work it out, contact the Taxpayer Advocate and explain why it will affect your job status. Affecting your credit rating will not qualify as a hardship.

A lien is not "put on a credit report". It is a public document filed at the recorder's office as are mortgages, to notify anyone that the debt is owed and if any property is sold, the money goes to the debt before the owner. It establishes the IRS priority order of creditors in a bankruptcy. The credit agencies search for liens and mortgages, etc. in their data gathering.

Sorry to be so vague, but it is a somewhat vague area and if your account is in the hands of a Revenue Officer (higher up Compliance Officer) all bets are off. After a certain $$, it is a requirement for the employee to set up an IA.
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Old 08-26-2009, 02:39 PM
 
Location: Charlotte, NC
7,399 posts, read 6,412,518 times
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perhaps you mean judgment? I have heard of the IRS doing that.
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Old 08-26-2009, 03:32 PM
 
Location: 23.7 million to 162 million miles North of Venus
1,301 posts, read 1,803,720 times
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There are several very good answers already.

From the IRS about it:

Quote:
It is important to contact us and make arrangements to pay the tax due voluntarily. If you do not we may take action to secure payment.





Some of the actions we may take to collect taxes include:
  1. Filing a Notice of Federal Tax Lien,
  2. Serving a Notice of Levy; or
  3. Offsetting a refund to which you are entitled.
An explanation of this process is as follows:
The federal tax lien is a claim against your property, including property that you acquire after the lien arises. The lien arises when you fail to pay the taxes you owe within 10 days after we send our first bill. By filing a Notice of Federal Tax Lien, the government establishes its interest in your property as a creditor in competition with other creditors in certain situations, such as bankruptcy proceedings or sales of real estate. The filing of a Notice of Federal Tax Lien may appear on your credit report and may harm your credit rating. Once a lien arises, the IRS generally cannot issue a "Certificate of Release of Federal Tax Lien" until the taxes, penalties, interest, and recording fees are paid in full or the IRS may no longer legally collect the tax.
Tax Topics - Topic 201 The Collection Process

It appears that if you are making payments but do not have a payment agreement with them then you could see a lien or maybe even a levy. Just sending in payments without having a payment agreement with them would not protect you from lien or levy.

And as sweetana3 mentioned, in her excellent post, the IRS doesn't place it on your reports. There are 3rd parties that go through records looking for liens, mortgages, judgments, etc., and provide the info to the CRA's (for a fee)
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Old 08-26-2009, 05:58 PM
 
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:-) It helps to have retired from working with the IRS for 31 years. Most of that time was with the Taxpayer Advocate. I have seen almost everything.

Most of it comes down to communication on both parts. You would be amazed at what goes out and what comes in. We wrote one man about a bill and he wrote back about his neighbor? I had someone ask me to "just make it go away." Lots of suicide theats which were referred to our office. On woman's husband said "well, she always says that." And on and on.

My best story is the suicide threat from an older woman. She was getting letters sent by the IRS to her deceased husband and he died 10 years previously. Once I figured out what was going on, we found $2.5 million in bonds she did not know she had sitting out there waiting for her to claim. And, it started from a suicide referred call.
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Old 08-26-2009, 07:49 PM
 
Location: 23.7 million to 162 million miles North of Venus
1,301 posts, read 1,803,720 times
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Quote:
Originally Posted by sweetana3 View Post
:-) It helps to have retired from working with the IRS for 31 years. Most of that time was with the Taxpayer Advocate.
Ahhhhh, that's why your answer was so good.
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