-
Need advice about a tax lien
I recently applied for a loan to help pay off medical bills and to make a few improvements to my house. I was shocked when I was told I would have to wait for a reply. My shock grew to rage when I received a letter denying the loan because of a tax lien against me. (See the " You did what!!!" thread, I started in the lounge awhile back if you want more details)
Anyway, I am going to contact State Franchise Tax Board today to get more information and get this whole tax lien ordeal cleared up.
So my question is this, what type of effect will this tax lien have on me in the long run ? Will it still haunt me and my credit even after I get it cleared up ?
Also do I run the risk of have future returns being red flagged because of this ?
-
Re: Need advice about a tax lien
It depends. If it's a lien brought about by fraudulent information (your mom forging your name, what not) then, most likely, it will be wiped off of your info. It may red-flag your future returns...or even future credit inquiries. I would need to know how the tax lien got placed on you to begin with...
Personally, I think you should close your current Social Security Number access and get a new one (this is allowed by the Federal Government to individuals who've had their "identity" stolen). You've been the victim of credit fraud...and by a family member, no less. There is no way that you would be able to prevent her from doing this again, later on down the line, unless you get a new SS# that she cannot get.
But, I would like to hear what happens.
-
Re: Need advice about a tax lien
Ok, good advice Venus. I'm going to go to the Social Security office today and see about getting my number changed. Wait, before I do that what will happen to the everything I currently have under my original SS# (loans,positive credit,etc) ? Also will I have to establish credit all over under a new social ?
I'll give you more info about the lien once I find out more.
-
Re: Need advice about a tax lien
No, you won't have to do that. Your other loans will "transfer" to the new SS#. All of your credit history will go with it...but, you'll have a new number so that certain person won't be able to continue using your information for their needs.
-
Re: Need advice about a tax lien
Venus is correct though that IRS, credit bureau and other automated computerized data collection is going to flag the existance of a 'tax lein'. While it should certainly be possible to explain away the reasons for the 'tax lein' in your case, this will not stop attention being drawn in your direction and questions being asked in the first place.
-
Re: Need advice about a tax lien
The "you did what rant" was http://www.stripperweb.com/forum/showthread.php?t=48751
for anyone who wants to read it. I will and maybe comment about it after I sort through stuff..
-
Re: Need advice about a tax lien
I'm glad both of you are online. I have a whole new set of problems.
I just learned that access to my bank account is blocked, not to mention I will not be getting my paycheck either. ( I also work as Co. Social Worker and the State of Ca. issues my paychecks) So right now I am pretty much flat broke. I have been trying to get in contact with the SFTB all day with no avail. Any advice ? I was so pissed and hurt that I was crying for 2 hours straight !
-
Re: Need advice about a tax lien
Quote:
Originally Posted by montythegeek
Gee Monty, thanks for posting the link. Seriously, I'm not trying to relive that period as it trigger a 2 month deep depression that I never want to experience ever.
-
Re: Need advice about a tax lien
FH,
It seems the important issue first is who filed the lien. It could be something as small as an escrow-check for property taxes lost in the mail. Find out who first, then how much, and why a lien. If you filed ofr an extension and your ds (not deep space) mother filed a form, your mom is on the hook for falsifying your signature. If you have not done so yet file your return ASAP even though you have to the 15th of August. If your mother induced this mess it would surprise me since I doubt the IRS would have moved so fast.
Be prepared to be audited by the IRS. If you want to be mean to your mother turn her into the IRS for claiming the kids falsely, but be ready for the family consequences. You have papers and you have proof.
Be sure all your taxes are paid on the legal schedule (with extensions). Get a clean bill of health from the tax folks and make the credit agencies put that in your file. If you were turned down for a loan, you have the right to the credit files. Get all 3 ASAP and make sure everything is correct.
If you make the tax people happy now they will not flag you for a mix up or false filing. If you were not at fault. If the momster is behind the mess she is facing a lot of crap, however. If you missed something, just stay on top of it and it should work out.
-
Re: Need advice about a tax lien
Farah,
If you can afford a lawyer see them ASAP, otherwise go straight to the agency that filed the lien and work out a payment plan. the lawyer idea is better, but not faster.
How can they file liens without notifying you at least in some fashion? I can see them moving before you can clean the accounts out, but they should be willing to deal for a payment plan if you go to them.
You need a lot of facts you have not mentioned here (and if you know them I would not necessarily write them here). Even if they are acting from bad info, they are not out to starve you, just get their money. Put all the boxes in the car, and ask them to audit you if you think they are working from really bad info and show the records. Tell them you have them in the car and prove what you have to or negotiate a payment plan.
-
Re: Need advice about a tax lien
Thanks for your response Monty.
The California State Franchise Tax Board filed the lien. I got that much info from my employer. Now, I did hire an attorney to handle the IRS situation, which was a f-ing nightmare. Basically after all was said and done the IRS told me that they can't stop her from claiming the children and/or filing taxes under my name ! WTF ! I know crazy. So it turned into a knock down drag out. Where I had to bring in document, after document.
Now the reason I didn't get any info regarding the tax lien is because my egg donor keeps contacting the IRS and the Ca. Franchise tax board and changing my address. Saying that my poor daugher has cancer and is in the hospital and she has power of attorney over my affairs. I am going to contact the attorney who represented me before but, honestly I don't have enough to pay more attorney fees. So I might have to handle everything on my own.
-
Re: Need advice about a tax lien
Obviously, this situation sucks. However it is a noteworthy example of just how merciless federal and state tax agencies can be once something triggers the 'wheels of their automatic machinery' into motion. It is highly probable that both you and your mom are going to be thoroughly audited. It is also highly probable that the federal and state tax agencies are not going to relent on the 'wheels of their automatic machinery' issues unless you pay them the amount of money they are (bogusly) asking for first, and THEN allow time for an official determination of who can legally claim who as dependents, (hopefully) followed by removal of the lein, unfreezing of assets, and realignment of tax liabilities.
Unfortunately, this is also a noteworthy example of just how 'insecure' bank accounts, investment accounts etc. really are versus the power of the IRS and state tax agencies. If you don't have cash in hand (or gold bars, or other tangible salable objects which do not involve a bank/brokerage/mortgage account transaction) you are screwed when assets are frozen. Also do not attempt to deposit any additional cash in your checking account for the purpose of paying your attorney or anybody else by check, because it's extremely probable that any new deposits will be frozen too !
Unfortunately, my only useful advice in this situation is to start earning lots of extra cash, and fast, and preferably not from a source which pays you by check !
-
Re: Need advice about a tax lien
Also, you need to get your mom as "power of attorney" off. After all of this, I think she's proven that she's not trustworthy. Find someone else who you know will do what is in your best interest...not theirs.
Even hiring an estate attorney would be better than having someone like your mom.
Also, if she does NOT have power of attorney over your affairs...and she has some "false" document stating that she is...she's in a world of shit. Perjury, to start...falsifying a legal document, etc, etc, etc.
I would also contact the IRS and State of CA and tell them that NO ONE is to change your mailing address without a special "PIN" number or code. And the only people who are to know that code are you and your lawyer. If that code is ever forgotten, then you are screwed...but do not give the code out.
I would like to know how your mother gets away with doing this. How does she constantly do this stuff and these agencies just let it happen?
Gosh, Farrah, good luck. :hug:
-
Re: Need advice about a tax lien
Wow. Don't quite know where to start. I get the impression this is a state tax lien.
For unpaid income taxes? Your state government does have a computer tie in to the IRS
and if you've reported and paid with the federal tax system, but ignored the state,
the computer comparison will find that out and flag you in the state system.
Actually on social security two years ago I had accrued imputed income from a corporate life insurance policy that is still in force from a past job, and a imputed unpaid social security tax. ( the amount was about nine dollars a year.) So I called up social security
and offered to pay the amount of imputer (yet uncollected) social security tax on imputed income I never received. They refused and said they don't take payments. Then I called the IRS up and they said they are just the tallying agent for social security and to call social security.
Then I got a new job and the $27 was taken out of my pay and transmitted to social security so it is all settled and clear. (I still wonder what happened to the employer matching amount but that is not my problem.)
If your unpaid social security tax is too high, the IRS might file a lien but they seem to view it
as not their primary collection duty. To be clear you could have a situation as an
Independent Contractor where your federal taxes are paid but you haven't paid the social security tax.
Solution: try to negotiate a payoff with the feds. You'll need a tax lawyer.
If a state tax lien the same thing. Negotiate a payment at discount with the state government.
-
Re: Need advice about a tax lien
More on frozen: Good thing you are a stripper. Your should be able to survive on the cash payments from the club. Change them into money orders at Walmart and pay your bills that way, while you are trying to negotiate the payment agreement. This money can not be easily attached or frozen. You are basically acting in good faith, and the cause of this is not your fault. If the system crushes you, this would be unjust, and you should have legal recourse in a court of equity.
-
Re: Need advice about a tax lien
She keeps getting away with all of this BS because of her standing. She has a doctrine in Physics which allows her to go by Dr.so&so. Most people view doctors in high regard and immediately throw caution to the wind. Which my egg donor uses to her benefit. Basically she is a highly educated con-artist. When you mix that with my step-father's standing, he is a college professor, it spells trouble for Farrah. Especially when they say my daughter is a stripper. Which why I got a job with the State as a social worker to counteract the negative response we get as strippers.
Its not until whoever shes conned actually meets me in the flesh or speaks to me on the phone ( and see that I too am intelligent and not some whore who only knows how to take her clothes off for a living ) do they realize they've been douped. By that time its normally too late.
Also the reason she (and my step-father) are doing this is to get out of paying their taxes.
They are in the $200,000 plus income bracket,with no dependents.
Anyway, I contacted the state tax board and I just keep getting automated systems.
So I'm going try the website for other contact numbers.
For some of you who don't know I have advanced cancer and am very weak. Which is another reason she is getting away with this bullshit. I'm not my usual stay on top of everything self. Right now I'm just trying to focus on getting this lien off and not the fact that my mother is an evil self centered psycho ! Because honestly I am extremely hurt that is doing all this bullshit.
I'm also focused on getting my body strong so I can get back to earning cash in the clubs again.
-
Re: Need advice about a tax lien
Oh, I forgot to say thank you for all of your advice. It helps alot and I really do appreciate it. : )
Farrah
-
Re: Need advice about a tax lien
Hi, this may be somewhat duplicated but here is my take on tax liens.
1st - you need to get a copy of the lien itself. You may have to go to the County where it was recorded. Note that even when the state recalls the lien - it may take the county like 6 months to post and clear it up.
2nd - either independently or via hiring a competent professional for assistance contact the FTB and speak with/work with the collection's officer to see about how they will stop enforcement action(s) while you clear up the lien.
3rd - if the lien is small enough - you may be faster at paying it rather than fighting it. If you pay it, get a lien release from the FTB and see if you can get it recorded at the county faster then their normal process.
4th - if the tax returns were filed and forged by your mother - then you should file correct tax returns with an explanation. You will have to work with a revenue officer and/or the taxpayer's advocates office but you can clear this up.
5th - if you are the guardian of the children and that is either court directed or similar, you will still have the rights to claim head of household status and dependency exemptions although stupid computers will grant them to the first filer. So, next year, be on the spot and grab them first - proper planning should allow you to file fairly early even though you are self employed.
6th - depending upon the relationship you have with parents, either demand the difference in tax costs (note from a family perspective it could be economic advantageous for them to claim and rebate you the tax difference - with their additional tax savings say going to kid's college fund - I do this with divorced clients all the time) other wise fight for your proper deductions and the IRS will adjust your parents return in the long run. The stress should be considered.
7th - write the credit bureaus explaining the tax lien and how it is based upon fraudulent activity of others.
If you have questions you can contact me directly -
Hope some of this helps.
Regards,
Daniel D. Morris, CPA
[email protected]es.com
-
Re: Need advice about a tax lien
Hey Melonie,
At least the professional did not say we were full of chit. Somewhat surprising for a bunch of well-meaning amatuers like us.
-
Re: Need advice about a tax lien
Farrah, I have sent you a PM.
I would like to say to everyone else that Dan Morris is not only a fabulous CPA, he is also a super- cool dude. If you are working in the adult biz (or other biz) and looking for an accountant in California, I highly, highly recommend that you get in touch with him.
-
Re: Need advice about a tax lien
Thanks Dan. I will be contacting you in the future for sure.
I spoke with my egg donor about the lien again to day. At first she was extremely rude and hung up on me. So then I called back and calmly told her I had enough and would be turning her in to FTB as well as to the IRS again. I also informed her I would be filing charges against her for forgery and fraud.
After which,she left several messages offering to pay the lien. Which I have saved as evidence to her guilt. I let her off the first when she promised to take care of everything but, enough is enough.
-
Re: Need advice about a tax lien
Ahhh, the power of potential litigation !!! I'm sorry that this had to go down with so much animosity, Farrah. But it would appear that your mom has seen the light (and/or the dollar signs) ... a professional person having to deal with potential forgery/fraud charges would cost them much more in both professional credibility and legal fees than the dollar amount of the tax lein. Hopefully she will actually follow through on her pledge such that the IRS/FTB will get off your back, which will then provide you 'breathing room' to try and mop up the consequential damage done to your credit rating etc.
-
Re: Need advice about a tax lien
As much as I hate to say it...if she does this again, make sure you make a mention of giving this information to the local papers.
More than money, she would hate for her "good name" to end up in the paper attached to activity like this!
-
Re: Need advice about a tax lien
Yes, Mel the power of potential litigation works as a great motivator. The first time she screwed over me with the IRS, I immediately hired a tax attorney. Once we went before the IRS and she saw they were siding with me, she asked if we could handle the matter privately. She did give me life and the kids are crazy about their grandparents so I agreed.
Once I started getting really sick again, she went back to here old "feeling of entitlement" self.
I contacted the FTB and just as I suspected she had changed my address. I had a password added to my account and notes were made about the situation. The rep also asked if I wanted to have an informant filed against her and start an investigation.
Just as I started to give her my egg donor's ss#, I stopped and pretended not to know what it was. I kept the option open by saying I would call back once I knew what it was.
God, I just could bring myself to turn her in, not yet anyway.
I also applied for a payment plan and I was told I would get a response by Monday.
But wouldn't you know my egg donor stopped by with the full amount of the lien.Hmm, I wonder how she knew the exact amount !!
Anyway, I got a money order and mailed it. So at least thats taken care of but, I still have no access to my accounts until the payment is received and processed.
So I'm not over the hurdle just yet !
Venus, thats a great idea. I'll be sure to keep that in mind. I'm know it would make for a good read...LOL
-
Re: Need advice about a tax lien
Turn her in now, while you've got some good evidence of a fraud that you can prove.
The relationship, (as you point out), can not be salvaged, and she doesn't seem to care about you. If you cause her enough pain each time she steals from you or takes something from you, she will slow down or stop doing this.