Advantages of Paying a Tax Lien?

Question

About 8 years ago, I worked for 5 months in Maryland.  A few months ago, I applied for a home equity line of credit and discovered my credit score went from 765 to 688.  When I looked into it, the local municipality where I worked in Maryland 8 years ago placed a tax lien against me.  Since my return to Pennsylvania 8 years ago, I've been at the same address, filed my all my tax returns w/ same address.  I never received any notification from Maryland that I owed taxes.  I didn't realize my employer didn't take out the correct amount from my pay.  If I had realized I owed them money, I would have paid it.  But I never heard word one from them (still haven't) and it was like out of the blue they added this tax lien to my credit score.

From what I understand, even if you pay an outstanding tax lien, it will remain on our credit report and still show as a "negative", ie. your score will not rebound even if you satisfy the lien.

I'm wondering what the benefit is of even paying this lien, if they won't restore my credit rating to where it was.  Any advice would be great!

? · Accepted Answer

unless they have actively tried to collect this, the lien will drop off at ten years. if you pay it off, it
will drop off your credit report in either three or seven years.  it won't stay on your report for ever.
when the lien drops off your report,your rating will rebound. if you have no contact with anyone
regarding the lien for ten years it becomes not collectible.

Steve D · Answer

If you don't pay, it stays on your report as unpaid and your score will not begin to rebound.  If you do pay it, it gets marked as paid and yes, your score will slowly begin to improve as the debt ages and becomes less important.

? · Answer

You do realize Interest is accumulating on that unpaid tax bill.  
Benefit is you might save Thousands by paying it now.

Anonym · Answer

what is your income...or what is the tax owed....you give me on and I will tell you the other....that's because they didn't withhold social security tax...about seven percent....it can't be state or federal income tax...if they didn't withhold enough you pay it at tax time...so, back to your question...advantages of paying....just the other day I pumped gas into my car...walked inside and paid...I owed it...that the advantage

Advantages of Paying a Tax Lien?

4 Antworten