A tax lien reporting on your credit reports is going to cause substantial negative issues to your credit scores.
Paying your tax debt in full is the best way to get rid of a federal lien. The IRS usually releases your lien 30 days after you have paid your tax debt.
Once the lien is released you can file IRS form 12277 and request that the lien be removed from your credit reports.
State and local tax liens are a different story. Although it’s always a good idea to pay the debt, removing a state or local lien isn’t as streamlined as the federal counterpart.
You can try disputing the lien with the credit reporting agencies or requesting for the verification and validation of the trade-line information with LexisNexis and LCI.
Just like any other account, you should try to be proactive and work on the derogatory information but, it’s important to understand that the only information that can be removed from a consumer credit report is information that is inaccurate, unverifiable, incomplete, or not in compliance with the law.
CreditFirm.net has helped thousands of clients improve their credit scores and remove tax liens from their credit reports.
If you have a lien on your credit reports contact CreditFirm.net to find out how we can help fix your credit and improve your credit scores.