Getting a Tax Lien Removed from a Credit Report
Few things lower your credit score more than a tax lien. A tax lien is issued by the IRS when you fail to pay your taxes during a certain period of time. Even worse, the IRS reports the lien to all credit-reporting agencies, so it becomes part of your credit report. But you can make a difference in how quickly you remove the tax lien, by paying off the lien and rebuilding your credit score.
Instructions
1. First and foremost, pay off the tax lien. After you have sent the money to the IRS, you should receive an IRS Certificate of Release of Federal Tax Lien in the mail within 30 days. If not, contact your local IRS office to make sure the money has been received.
2. After you receive the Certificate of Release, submit a request for your credit report with each of the major credit-reporting agencies: Experian, Equifax and TransUnion. As you scan your report, make sure your tax lien status has changed from "unpaid" to "paid." If it is still marked as "unpaid," call the agency to dispute it.
3. A paid tax lien remains on a credit report for exactly 7 years after the date it was repaid. However, just because a tax lien remains on your report for 7 years or more doesn't mean you can't dispute it. Get in contact with the credit-reporting agencies and ask representatives if it is possible to remove the lien since it has been paid off.
4. When you contact your credit-reporting agency you should submit a letter of request asking for the tax lien to be removed. You should enclose your certificate from the IRS that shows you paid off your tax lien.
5. Above all, work as hard as you can to rebuild your credit score. While a tax lien can stand out like a sore thumb on a credit report, you can counterbalance it by paying your bills and taxes on time. These actions will convince anyone who looks at your credit score that you are financially responsible and have learned from your tax lien.
Tags: your credit, credit report, credit score, your credit score, credit-reporting agencies
