The Disquieting Issue Of Having A Tax Lien On Your Credit Report

By Danny F Ford

One of the most arduous credit problems that can happen to you is a tax lien against your real estate or on your credit report. The IRS can be unyielding when they are trying to collect their money and you will not likely be able to get out of it. It is possible that you can settle for a lesser amount but to actually get out of the tax lien is virtually impossible.

If you possess real estate the lien will be put against that. It will stop you from selling the property and ultimately they may even be able to seize the real estate to satisfy the lien. If you do not have real estate it will only show on your credit report but you will not be able to get a home mortgage, a car loan, student loans or probably even credit cards. A tax lien is very harmful to your credit scores.

It is very exceptional that someone gets out of a tax lien entirely. Most often the best thing that can happen is that you are able to agree to pay a lesser sum to comply with the lien. However, even after it is paid off it is possible that it may still remain on your credit report for as long as 7 years. If it never gets paid it could remain on the report for as long as 15 years but the Internal Revenue Service can restart the lien so it is possible that you could have a tax lien on your credit report forever if you don't pay it off.

It is in all probability not a smart move to try to fight a tax lien, as the IRS is exceptionally influential. You probably won't win. However, you should attempt to negotiate for a smaller amount to fulfill the debt. Avoiding the IRS is not recommended either as they will locate you, every time.

After you have paid off the tax lien, it is possible that it will still show on your credit report for as long as 7 years. Though, you can take some actions to attempt to avoid this. When you are negotiating for the smaller amount, put in a request that they remove it from your credit report also. If you are unproductive at that you can try to dispute the listing with a letter.

You will need to write a letter or dispute to all of the three chief credit-reporting bureaus. In the United States, they are Equifax, Experian and TransUnion. You have the right to dispute any negative item on your credit report because of the Fair Credit Reporting Act. If the tax lien has been paid and is showing as satisfied you may be able to get it removed.

Make certain that you keep all copies of all correspondence to and from the credit bureaus. After receiving of the letter, they will have 30 to 45 days to either verify the accuracy of the listing or completely remove it. If you are not successful in getting a removal right away you may have to try again until you succeed.

Writing letters of dispute and doing other credit repair tips can be very useful for you and your economic life in the long run. You can do it yourself or hire a professional but you are responsible for knowing and dealing with whatever shows on your credit report and if you need to do some credit repair, it is better to do it sooner rather than later when you need to have good credit. - 31382

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