Friday September 22, 2023

How Tax Lien Affect Your Credit Report and Ways to Remove It?

You can delete a tax lien from your credit history following new IRS regulations. To try to collect any taxes owed, the IRS may impose a tax lien on buildings, vehicles, or commercial enterprises. An IRS lien that was paid off in the past would still be on your credit history for at least seven years, significantly lowering your credit score.

If you have unpaid state levies, the state may place a lien on your house or car. This indicates that up until the debt is paid off, the state has a legal claim on your property. Additionally, if made public and reported to credit bureaus, the lien information might negatively impact your credit score. So, how to remove IRS tax lien from credit report?

Tips to Remove Lien from Credit Report

If the lien was filed by the federal government and appears on your credit record, you can have it withdrawn and deleted once the tax obligation has been completed. The IRS states that after your debt is satisfied, the lien will be released within 30 days.

Follow these tips to get a lien removed from your credit report –

  • Visit to order a duplicate of your report. Look in the report’s section on public records to see if your tax lien is mentioned.
  • With your state tax agency, pay the remaining sum. You can either do it all at once or set up a payment plan.
  • Save copies of all paperwork about the tax lien and your repayment schedule. Get a letter from the state tax agency confirming that you have settled the debt once you have paid the lien in full, and then provide this documentation to the credit bureau.
  • Dispute the lien with the credit departments and ask that it be lifted. The credit department has 30 days to react to your request and 90 days to decide whether to grant the lien.

If you are having problems with a tax lien and want to make sure that all the proper steps are taken, think about speaking with a tax specialist about the right thing to do.

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