Tax Lien - SF 86

SECURITY CLEARANCE Q&A
#1

26.6 - In the last seven years have you had a lien placed against your property?

I had an IRS lien placed against my property more than 9 years ago and it was withdrawn 3 years ago following the completion of payment agreement entered into at the time the lien was placed.

So is this question a yes or a no. The lien was in place within the last seven years, but it was not placed within the last seven years. I don’t want to be coy, but would happily avoid the issue if I’m being 110% accurate in my response.

#2

Sounds close enough where you might as well list it. The key point is your debts were paid off.

#3

The tax lien issue falls within the reportable period, i.e. not "resolved"until within the reporting period. Report the lien and the details. Reporting it now will help with the timeliness of your case.

#4

Thank you for the reply.

#5

You said the key point is that the debt was paid off. That is the general consensus I have seen as well. I seem to be an outlier. From tax years 2012 to 2015, I had late filings and payments. All have been filed and paid as of several years ago. Nevertheless, my POC says this issue is hanging up my suitability with agency X. Good to go on the clearance (according to POC), but suitability is still up in the air. What gives?

#6

So you had the tax lien which was filed nine years ago, but as recently as 2016 (when the tax return for 2015 was due) you still had late filing and/or payments? That sounds like it could be a separate issue, and well within the seven year period.

And it also sounds like you already submitted your SF-86/eQip and are pretty far along in the process.

They tend to take tax issues very seriously.

#7

Nope. I never had a lien at all. Just filed late several times, and paid late several years. It took a bit for me to get caught up, but I have been completely ahead on everything for approximately 3 years now. I applied for the job last January.

Sorry if I did not make it clear that I am not the OP. I jumped in and responded to one your your responses. Apologies for any confusion.

#8

Tax Liens are VERY different than Tax Debts, ensure you’re using the correct word when it comes to the SF86 and if in question speak to you BI about it.

A Tax Lien is a Tax Debt that has gone un-paid for sooo long that the IRS has placed a ‘lien’ against you, a property, your wages (garnishment), etc. A Tax Debt, unpaid taxes however late, do not constitute as a Tax Lien. HOWEVER!! - it is very worth your while to make sure that ANY tax debt with witch you are having problems with is conveyed to you BI or even your current FSO so that NOTHING comes as a surprise here.

Bankruptcy, tax debt, stuff like that is relatively ok so long as you are up front about it and are very clearly working towards paying things off…

#9

Actually, the IRS will file a recorded lien, even if you have set up a payment arrangement with them. The lien will not be released until your installment arrangement is satisfied in its entirety.

#10

Most states establish tax liens within weeks if the taxes are not paid on time.

#11

That’s what happen in my case.