If you have a tax lien being reported on your report you score is in serious trouble. You should remove this item as soon as possible.
The first step is to request validation from the bureaus. This is done through sending a dispute letter directly to each.
Unfortunately mistakes do happen on your report; there are estimates that 1 in 4 people have an error on their report.
Upon receipt of your letter the bureau will investigate the mark. They will contact the state or federal government and ask for verification that the debt does exist. If it is verified then you will have to make some form of payment.
It may be in your best interest to talk with a tax negotiator to work out a settlement with the government. You can often pay a reduced amount, and once paid you can remove it from your report.
These debts are collectible for 10 years. The negative mark will stay on your credit for 7 years once it is paid. If it goes unpaid you could have a lien on your report for a long time.
Upon payment you should wait around 3 months and then send another dispute letter to the bureaus asking for validation. We have learned that once the government has received payment they often will ignore a bureaus request for validation.
Thus your lien will not be verified and the bureaus will remove it from your report. Additionally if this mark was make in error then send any documentation along with your dispute letter to prove that.
Repayment
The IRS and state government often accept partial payment. To propose this to them you will make an offer in compromise, often called an OIC.
The government will look at; your ability to repay, your income, your assets, and what they expect to recover. Additionally it will help your chances of acceptance, if you attach a letter showing financial hardship.
It may be in your interest to hire a tax attorney or negotiator to help negotiate a repayment amount. It is not absolutely necessary but nonetheless a good idea.
In sum, you can remove a tax lien and should. You don't just have to wait seven years for this mark to fall off naturally. - 16928
The first step is to request validation from the bureaus. This is done through sending a dispute letter directly to each.
Unfortunately mistakes do happen on your report; there are estimates that 1 in 4 people have an error on their report.
Upon receipt of your letter the bureau will investigate the mark. They will contact the state or federal government and ask for verification that the debt does exist. If it is verified then you will have to make some form of payment.
It may be in your best interest to talk with a tax negotiator to work out a settlement with the government. You can often pay a reduced amount, and once paid you can remove it from your report.
These debts are collectible for 10 years. The negative mark will stay on your credit for 7 years once it is paid. If it goes unpaid you could have a lien on your report for a long time.
Upon payment you should wait around 3 months and then send another dispute letter to the bureaus asking for validation. We have learned that once the government has received payment they often will ignore a bureaus request for validation.
Thus your lien will not be verified and the bureaus will remove it from your report. Additionally if this mark was make in error then send any documentation along with your dispute letter to prove that.
Repayment
The IRS and state government often accept partial payment. To propose this to them you will make an offer in compromise, often called an OIC.
The government will look at; your ability to repay, your income, your assets, and what they expect to recover. Additionally it will help your chances of acceptance, if you attach a letter showing financial hardship.
It may be in your interest to hire a tax attorney or negotiator to help negotiate a repayment amount. It is not absolutely necessary but nonetheless a good idea.
In sum, you can remove a tax lien and should. You don't just have to wait seven years for this mark to fall off naturally. - 16928
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