My IRS debt qualifies for discharge, but what about liens?

[lomalindabk]

I have IRS debt that qualifies for discharge -- more than three years old, and meets the 340 day rule, an no willful personal act or fraudulent returns.

I was placed in Currently Not Collectible Status on the debt in 2010 due to hardship (disability, took buyout fro employer to tide me over until disability and early retirement kicked in.), but the IRS automatically filed liens for the taxes after granting the NCS .

My attorney is basically saying that once the debt is discharged, all I have to do is write the friendly IRS to request removal of the liens.

There is no property tied to the lien. I had sold my house and liquidated all assets prior to the lien filing. It's my understanding that once the debt is discharged in Chapter 7, an IRS lien applies only to old property, not any new assets acquired post Chapter 7 discharged.

Does anyone have any experience in getting the liens cancelled after IRS debt discharge?

[justbroke]

Your attorney has correctly informed you. What you do is to contact -- simply write -- the IRS and ask that the Federal Tax Lien notices be removed. It's that simple. If the IRS agrees to remove the lien, they simply will just remove the liens. I don't have any experience with Federal Tax Liens so I only write from things that I have learned along the way.

Unless, these tax liens are for something like "trust fund" taxes (because you were an employer).

[lomalindabk]

Thanks for the reply.

They are straight income taxes incurred from W2 income and a 401(k) distribution when I couldn't roll over into an IRA from my departure from employment.

Even though I am Currently Not Collectible status, I still want them gone after discharge since they are two major whammies on my credit report. I've been told Tax lien public records can be as bad as having the Chapter 7 on my credit reports.

[justbroke]

Federal Tax Liens are bad when they are on the public record. Again, you can petition (ask) the IRS after discharge if they will remove the liens. I don't see why they would not; but they could have reasons (property?) for keeping them.