Remove Tax Lien on Credit Report Instantly

Remove My Lien Remove Tax Lien on Credit Report Instantly

How to Remove a Tax Lien on Your Credit Report in 3 Steps

Everyone would like to have a clean credit report. However, negative marks such as a tax lien on your credit report may ruin your creditworthiness. When credit providers or other entities see these details on your credit report, they see you as a person who does not honor their financial obligations.

The problem with tax liens is that they continue to appear in your credit report even after you pay your outstanding tax balances. Luckily, if you have paid off your balance, you can have the tax lien removed from your credit report. Read on to learn how and what DoNotPay can do to help you.

What Is a Tax Lien?

A tax lien is a legal claim that a federal, state, or county government places against assets for unpaid taxes. The tax lien holder has the right to sell your property to recoup the amount of unpaid taxes that are due.

Claims are also not all about taxes. If you buy something, let's say, a car on loan and cannot make the payments as agreed, the lending company can file a lien on the vehicle and take it. If you want to sell your car that has a lien, you must first fill out a lien release form to get a lien release of the car from the lender.

How Does Tax Lien Affect Your Credit Score?

A tax lien will negatively affect your credit score. This will hurt your chances of getting loans, credit cards, or mortgages. A tax lien has the same effects on your credit scores as a foreclosure or bankruptcy. If you fail to pay your tax lien, the damage to your credit scores will be permanent. 

However, even if you pay off your balance, a tax lien will continue to appear in your credit report for a certain period. Therefore, after paying off your tax balance, you must seek the removal of tax liens from your credit report. Just like you'd have a property lien removed, you need to have any federal, county, or state tax lien removed from public records.

How Long Does Tax Lien Stay in the Public Records?

Unpaid tax liens can remain on your credit report forever, but credit reporting companies may remove them within 10-15 years, depending on their policies. On the other hand, paid tax liens stay on the credit report for seven years unless you request the IRS to withdraw them.

How to Remove Tax Lien From Your Credit Report

The IRS has a program allowing you to remove tax liens from your credit reports. You can only request for the lien withdrawal after paying all your outstanding taxes or after successfully entering a payment plan and making three payments as agreed.

  1. Pay off your balance. If you have an unpaid tax lien, you should first clear it. You can make a lump-sum payment or arrange for a payment plan.
  2. Fill out the IRS Form 12277. IRS Form 12277 is an application for withdrawal of a federal tax lien. Submit the documents to the IRS office assigned to your account and attach a letter explaining why you are requesting lien withdrawal.
  3. Wait for the processing of your withdrawal request. The process takes between 30 and 45 days. Once the IRS accepts your tax lien withdrawal, you'll get Form 10916(c).
  4. Dispute the tax lien with the three credit bureaus. Reach out to the three credit bureaus—Experian, Equifax, and TransUnion—requesting the removal of liens from your personal credit reports. Send them the IRS Form 10916(c) together with an accompanying letter. The credit reporting companies must respond within 30 days and must decide the tax lien within 90 days.

Here is where you can contact and process the lien tax release:

IRS Form 12277Application Form
Understand Tax LienFederal Tax Lien Info
Help PageFAQS on Tax Lien
IRS Phone Assistance866-699-4096

It will take you roughly four months to successfully remove a tax lien from your credit report.

Remove a Tax Lien With DoNotPay

As you've probably figured out by now, removing a tax lien from your credit report is not a walk in the park. Dealing with different agencies, filling multiple forms, and the long waits in between can be very overwhelming. Luckily, DoNotPay can help you remove tax lien on credit reports in three easy steps.

Here's how to remove a tax lien using DoNotPay:

  1. Search for remove my lien on DoNotPay.

     

  2. Start our Remove My Lien product.

     

  3. Answer some questions about your specific lien and let us help you craft a letter to your creditor to resolve the issue.

     

DoNotPay Can Do More for You

DoNotPay can help you confirm with the government taxing authority to find out whether there is a lien against youWe can also help you:

What Else Can DoNotPay Do?

Apart from helping you remove a tax lien from your credit report, DoNotPay can help you solve other problems easily. These include:

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