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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 3911
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
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California Franchise Tax Board State Tax has filed a tax lien.

Customer Question

California Franchise Tax Board State Tax has filed a tax lien. It was filed May 2012, paid and released on Oct 2012. All 3 burueas show as Released but it is still on my public record. Is there a way to take if off as it will stay there for 7 years.
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Customer:

I'm not sure I understand your question. If you mean in the court records, you can take the lien release letter to the clerk of court and they will remove it there.

Customer:

I still don't see you coming into the chat. I'll move us to the "Q&A" mode. ,,, Maybe that will help ... (We can still continue a dialogue there, just not in real-time chat as we can here)

Customer:

Again, you can take your Release of Lien letter to the clerk of court and they will remove it. If I've misunderstood your questoin, let me know and we can go from there.

Customer:

Let me know...

Customer:

Lane

Expert:  Lane replied 1 year ago.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

What happens now?

If you haven’t already done so, please rate your answer above. Or, you can reply to me using the box below.
Expert:  Lane replied 1 year ago.

Mamoun,

I just found this on CA tax board web site:

The Notice of State Tax Lien and Release of Lien become public information after being recorded at a county recorder’s office or filed with the California Secretary of State.

So, if they have nor done so, you should be able to take the lien release letter to both county recorder's office and sec of state to be sure the release has been filed.

Here's the site: https://www.ftb.ca.gov/individuals/liens/liens.shtml

They also have a link for each county to obtain a copy of the release of Lien on that same page.

Hope this helps

Lane
Customer: replied 1 year ago.
Ok misunderstood my point.
California FTB filed a tax lien against me.
Credit report show it as public record and it is of course negatively affecting my FICO
I paid it in full.
Credit burueas reporting it as released/paid.

I need to remove it from my public record.
It is negatively affecting my FICO.
I need an expert to tell me how to remove it from the public report
Expert:  Lane replied 1 year ago.



No I understood your point , but I could probably have been more clear than I was.

You will need to go to the website I linked for you: https://www.ftb.ca.gov/individuals/liens/liens.shtml

You'll see there, that FTB "SAAAAYS" that they will file the release of lien with both the secretary of state and the county recorder's office JUST as they filed the lien itself.

That's what removes it from the "public record."

Or at least they imply it....




Here, again, is how they put it:

"The Notice of State Tax Lien and Release of Lien become public information after being recorded at a county recorder’s office or filed with the California Secretary of State."

My experience is that they are much quicker about filing the lien, than they are about filing the release.

In many states, the individual has to go the place where it was originally filed (varies by state ... many times it's the superior court for the individual's county of residence) and file the release for themselves.

It appears to me that CA is essentially passing the buck by telling you NOT SPECIFICALLY that they WILL file it, (even though under common law they are supposed to) but rather that (quoting them again) the liens and releases "...become public information after being recorded at a county recorder’s office or filed with the California Secretary of State."

Finally, it becomes even more apparent that the individual should do it when looking at that site and seeing that they provide a link for every county (to get a copy of the release) ...... implying to me, that you'll need to go to both the secretary of state and the county recorder's office for your county and file it yourself.




I'll do what research I can .... check back here in a few minutes, but it MAY be that you'll have to call the secretary of state's office and your county recorder's office to see what they say is the procedure for filing the release with them.

Again here's the site that I'm quoting: https://www.ftb.ca.gov/individuals/liens/liens.shtml

... AND ... this is the same site (same page, a little further down the page) where you should be able to get a copy of the release under the appropriate county link.




Let me see what I can find about the specific procedures for filing at those two offices ... check back here, if you would, in a few.

Lane

Expert:  Lane replied 1 year ago.

Fund this: Guidelines for Access to Public Records

THis is secreary of state.

And here's their main administrative contact info:

Administration Office

Main Number:(NNN) NNN-NNNNbr/>Legislative Office:(NNN) NNN-NNNNspan class="Apple-converted-space">
Communications Office - Media Only:(NNN) NNN-NNNNbr/>Administration Office Fax:(NNN) NNN-NNNN/p>Email: Legislative and other inquiries

If you'll give me your county, I can dig a little there too.

If you'd like, I can call tomorrow to see if I can get some specific procedure for you.

And finally, I'll be looking at the California code tonight... My guess is that, as in most other states, they are required to file the release with public records themselves.

Let me know

I'll keep looking

Customer: replied 1 year ago.
I only want to know if there is a way to remove it from my public record!
Expert:  Lane replied 1 year ago.

 

Yes, go to the web site I gave you, get a copy of the release and then file it with the county recorder in your county.

 

OR if you already have a copy, take it to the county recorder's office in your county and ask them to file it

 

Again, the tax board is supposed to do it, but you can always do it yourself

Customer: replied 1 year ago.
Filing it does not remove it from my credit report. Plus please don't worry about how to file it, I know how. I read the website, I called them. I went to the county prior of getting to this web service.

Please help me out by finding how to take it off my credit report
Expert:  Lane replied 1 year ago.



You originally said (and I am copying and pasting from above here):

I need to remove it from my public record.
It is negatively affecting my FICO.



Public record means the state public records

Credit bureaus are not public, As a matter of fact you can have the reports at all three bureaus frozen



California says this:

You must contact the credit bureau agencies directly to modify or to remove a lien from your credit bureau report.

We do not report lien information directly to the credit bureau agencies. The Notice of State Tax Lien and Release of Lien become public information after being recorded at a county recorder’s office or filed with the California Secretary of State. The credit bureau agencies get the information from either the county recorder or California Secretary of State and report it on your credit bureau report. We do not govern the credit bureau agency’s policy regarding the length of time or the accuracy of the information they keep on your credit bureau report.


Each Credit bureau has their own policy about how long items must stay ... a bankruptcy, for example will stay on all three bureaus for 10 years, regardless.




You are correct about the 7 year history.

An unpaid tax lien can remain on a credit file indefinitely per the Fair Credit Reporting Act.



Hopefully having all the facts will help you see around some corners. And hopefully you'll rate my answer based on its accuracy and thoroughness, rather than any good news/bad news content.
Customer: replied 1 year ago.
But my question was not been answered yet. What do I need to do to remove it from my credit report?
Expert:  Lane replied 1 year ago.

IT cannot be done.

They will not remove it

That is the complete and accurate answer.

The only law that governs them, regarding this issue, is the fair credit reporting act, and that law says that tax liens by taxing authorities can stay on credit reports INDEFINITELY.

The policy they have take is that they will remove them after 7 years.




The question you originally asked was how to remove this from the public record.

I answered that question ... accurately.




Now you are asking a different question.

I have answered that one accurately, as well




I hope that you want reality, facts. That is the best that I, or anyone here can (or should ) do.

Lane

Expert:  Lane replied 1 year ago.

So sorry, Mamoun, that you have chosen to rate based on an answer that is not what you wanted to hear, rather than the reality of how things work.

I would not be doing my job, however, if I didn't help you to understand that credit bureaus are private companies, and choose to do things the way they do, without regard to anything other than what the law MAKES them do.

The applicable here if the Fair Credit Reporting act, and it does not require the credit bureaus to remove liens from the report ... at all.

They are required to report that the lien has been paid, but that is all.

All three of the credit bureaus (as you know) DO currently have a policy of removing these and other negative issues after 7 years.




What you CAN do is have your credit reports frozen, so that no one can see them.

The California law on security freeze is in the California Consumer Credit Reporting Agencies Act, at California Civil Code §§ 1785.11.2-1785.11.6 and 1785.15

Here is the California Attorney General's page on how to do that:

http://www.oag.ca.gov/idtheft/facts/freeze-your-credit

Hope this helps

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