Given the complicated US tax system, it’s not surprising that hundreds of thousands of citizens have some kind of tax lien reported on their public records. A tax lien is filed in the event of unpaid taxes or an individual fails to file taxes.
Until very recently tax liens did report to the credit bureaus, If a tax lien had made its way onto a credit report, it would have a catastrophic effect on the credit score. In case your credit score was around 700, there would have been 60-100 point drop. Leins still show on your “public records’ and if these liens are unsatisfied this may keep you from getting approved for business loans and home loans.
How to delete a tax lien from your public records without paying in full
The only way to get a tax lien deleted in entirety from your public records is to get it either released or withdrawn. You may pay off the lien in full and get a “lien release,” however you can pay the lien partially and get a “lien withdrawal” from the IRS.
How to get get the IRS to issue a lien withdrawal
Firstly, as discussed, the way to get a tax lien deleted from the credit report begins with getting the lien withdrawn from the court.
The IRS allows for withdrawal of a tax lien under certain conditions in its “Fresh Start Program” Under this program, a case for lien withdrawal can be made under the following circumstances:
- The tax lien is paid off in full
- The individual is in an IRS payment program to pay the full amount due, with a balance below $25,000.
- The lien was filed in error.
Exceptions and Appeals Process for lien removal
Although this program requires that the IRS lien is paid in full instead of a negotiated settlement, the IRS may consider making exceptions and exemptions in certain cases, including if you’re a victim of fraud or identity theft. The same applies to having a balance over $25,000. Here too, the IRS may consider withdrawal of the lien, if it is determined that the lien withdrawal would facilitate the collection of the outstanding balance.
The exceptions mentioned above can be obtained by following an appeals process. The IRS allows for appeal after it has turned down an initial withdrawal request.
HIRING A PROFESSIONAL
If you’re seeking quick and more effective results in removing negative information off your credit report permanently, then reach out to me personally at Imax Credit Repair, where we’ve dealt with the credit bureaus for over a decade and can modestly say we achieved the highest deletion rates in the industry with the credit bureaus.
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