Follow up on query re: release of federal tax lien
- View SourceLast week I responded to the following question by stating that I
would forward any information provided by other members of this list.
QUESTION: I have a client whose tax lien has expired due to the
statute of limitations <10 year>. The lien has the self releasing
language but potential mortgage lenders will not accept it. They want
a filed release. I have contacted the IRS who refuse to file one
saying it is not necessary and they do not care what some lender
wants. Do you know how to resolve this catch-22?
Here are the two replies I received to this question.
He can always file a motion with the local court to quiet the title
which has the effect of removing the lien and that ruling can be
recorded with the local recorder's office so that when a title search
is done, both the lien and the ruling will be picked up. (B.L.)
Here is an option that may be available:
1) Have title/escrow officer or attorney confirm that lien has
expired. They should get a written form from the IRS that confirms
2) Provide proof from IRS to the 3 major credit bureaus that lien has
expired. Make sure that you send it with confirmation that each
bureau has received delivery. As I understand it, they have 30 days
to confirm derogatory credit info, or, they have to correct your
3) Request written documentation from all 3 bureaus that the lien has
been removed. Request copies of your credit file from each bureau to
confirm credit score and file content.
4) Have lender re-pull your credit file 15 days after confirmation has
5) Keep copies of all documentation, because chances are, this problem
will continue to surface for many years to come.
6) Remember, with the IRS, you are considered GUILTY until you prove
yourself innocent. (S.F.)