How To Get a Tax Lien Removed from a Credit Report

Is a good credit score important to you? If yes, the moment you see tax lien in your credit report, do not just take it for granted. Make your way into having the tax lien removed as early as possible. Just so you know, it can create a huge impact in your credit status as it lowers the credit score significantly.

The tax lien is sent by the IRS in the case you have failed to pay your due taxes for a certain period. The IRS even reports this to the credit reporting bureaus and the lien reflects immediately onto your credit report. When this happens to you, there is still something to do to rebuild your score. This is through quickly removing the tax lien from your report. Here's a guide on how you can do this:

  • Have the tax lien validated. There are a lot of mistakes that can go on with credit reports so the first step you must take when you see tax lien in your credit report is to call the reporting agencies for the validation of the debt. If there is no error, you can work on paying the lien to start rebuilding your score.
  • Pay the lien to the IRS. Send a payment to the IRS to settle the debt off. The IRS will send you a Certificate of Release of Federal Tax Lien within 30 days. However, if after 30 days that the certificate is not sent to you, contact the IRS office in your locality to ensure the payment was received.
  • Request a credit report from top credit-reporting bureaus. It is fine to only request the major agencies such as Equifax, TransUnion, and Experian for a copy of your report. Study your credit report and check out the tax lien status. It must be changed from unpaid status to paid. If not, dispute it with the agency.
  • Request for the removal of the lien in the report. Usually, a tax lien stays in your credit score report for seven whole years after it was paid off. However, you can contact the reporting agencies to request for its removal. This is possible because the tax lien is already paid off.
  • Submit the IRS certificate to the agencies. Prepare a letter to the credit reporting bureaus about your request for the removal of the tax lien from your report. Enclose the IRS certificate in the letter as an added proof that the lien has already been paid.
  • Work on rebuilding your score. No matter what you do, a tax lien will always stand out to bring negative impacts to your score. However, you can counterbalance this fact by paying off your taxes and other bills on time. This will give an impression to the person viewing your score that you have learned enough from the tax lien situation and you are a financially responsible person.

A lot of people have already been affected by tax liens in a lot of ways. However, you do not need to have the same story. If you know the right moves to take and the right things to do, you can easily rebuild your credit rating from such a failure. What you do with the tax lien in your report can determine your life in the next few years.


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