How to remove tax lien from your credit report?

A person’s credit history is a recorded documentation to creditors of how you address your debt. The problem is that, from time to time, negative information can show up on the report. One such negative mark can be a federal income tax lien.

When you don’t pay a tax lien, the negative mark is tied to your credit score. Even if you pay it, it stays on your report for seven years. Thankfully, you can get that tax lien mark removed from the report. Interested?

5 Steps To Remove A Tax Lien Report Off Your Credit Report

Pay It Off

Unpaid federal tax liens stay on credit reports indefinitely. It can last through any kind of credit problem you have. It’s the one mark that is persistent. Still, the majority of credit bureaus will remove unpaid tax lien information in 10 years.

If you pay your tax lien, it’ll be removed after seven years. This may seem the quickest way to get it removed, but it’s not. You can always take advantage of the Fresh State Initiative the IRS offers. It’s a program that allows the IRS to delete the tax lien is certain conditions have been met. When the withdrawal has been done, the tax lien won’t be shown on your credit report anymore.

If you’re unable to pay your tax lien, you can always set up a payment plan to pay it off. With a payment plan, you can qualify for the Fresh Start Program.

Qualify For Fresh Start Program

In order to have the IRS withdrawn the tax lien, you need to meet the agency’s Fresh Start eligibility requirements. Thisis done in one of two ways.

First Way

• Pay tax lien
• Stay abreast of the estimated taxes
• Be compliant for the last three years of tax filings

Second Way

• You owe no more than $25,000
• You agree to a Direct Debit Installment Agreement
• Direct debit must pay entire amount in five years or before the expiration of the collections statute
• Be in full compliance with filing and payment requirements
• Make three consecutive payments in a row
• Don’t default on present agreement of Direct Debit Installment
• No defaults on prior agreements of Direct Debit Installment

So long as you meet these requirements, you could qualify to get the tax lien erased from your credit report. However, your work is not quite over and may be a bit complex. With that in mind, you may want to have some assistance from experts who can help you traverse the tax law.

Turn In The Tax Lien Withdrawal Form

Should you meet the Fresh Start Program qualifications, you can file the IRS Tax Lien Withdrawal Form. Once you complete the form, you’ll need to mail the form to the IRS. Send I through first class mail to the address in the Publication 4235.

Request A removal Of IRS Lien Operations

After your application has been approved, the IRS will reach out to you. When this happens, you can rest for them to remove the tax lien from the report. This doesn’t happen without your asking them to do so. You must submit the request in writing and make it as formal as you can so that they’ll approve your request.

Make sure to attach the Form 10916© Withdrawal of Filed Notice of Federal Tax Lien, which is what the IRS sends you after the Fresh Start Program application has been approved.

Yes, it’ll take time for the IRS to respond to the request, but the process begins at least.

Dispute The Reported Tax Liens Via the Credit Bureaus

Along with the asking the IRS for removal of the Tax Line, you can dispute the issue with the credit bureaus. You need to get into contact with all three of them. When disputing the tax lien, the agency has 30 days to respond to the matter. The FTC offers a sample letter you can send to dispute the tax lien with each agency. Add a copy of the Form 10916(c) to your letter to provide proof the IRS agreed to remove the report.

Here is the contact information for each of the three credit bureaus.

Equifax
P.O. Box 105069
Atlanta, GA. 30348-5069
866-349-5186

Experian
P.O. Box 9554
Allen, TX. 75013
800-509-8495

TransUnion
Fraud Victim Assistance Department
P.O. Box 2000
Chester, PA. 19022-2000
800-916-8800

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