I have a paid tax lien that I would like to remove from a credit report I have filed form 12277 in hopes of having the IRS withdraw the orignal lien. The IRS response was they could not withdraw the lien because it had been paid. While, I can see that viewpoint, I can also envision a case where there were taxes in dispute yet they were paid prior to the resolution of the issue. In the event the IRS position was found in error it would seem unfair to have a tax lien continue to be reported. I appreciate any help.
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Pub 1450
A paid lien should be released automatically within two months. If not, see Pub 1450 for instructions on requesting the release. The form you tried to use is for a different purpose. -
Thanks, for the reply. I really am insterested in using Form 12277 because if I can have the lien withdrawn it will be removed from my credit report. Otherwise the negative information will remain for seven years from the date paid. I beleive I can meet the qualifications of 12277, the issue is the IRS says that they can not remove a lien that has been paid. I beleive they should be able to.Comment
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can't change history
No, they can't WITHDRAW a paid lien. They will issue a release that shows nothing is owing but they can't change history. Form 12277 is mostly to allow property to be used or sold in connection with paying off the debt.Comment
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Certificate of discharge
As jainen says, what you need is to follow the one page of instructions in Pub 1450.
The IRS is supposed to discharge the lien within 30 days of payment also they must "promptly make reasonable efforts to notify credit reporting agencies", if it is requested in writing. There is also a nationwide list of phone numbers where you can contact the special offices that handle this.
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no seven years
Gowith, this is no problem. If you have a loan officer, tell her to do it. Anyway it's really easy and automatic. And don't worry about no seven years. You'll be back on top of the world long before then!Comment
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