Remove Tax Lien
With a tax lien on your credit report your score will be dramatically affected. You should take action to erase this mark from your report.
The first step is to have the bureaus validate the lien. You need to send each bureau a dispute letter.
Surprisingly it is not out of the ordinary for incorrect information to be reported on your credit. It is estimated that 1 in 4 people have inaccurate information on their report.
When your letter is received then the bureau will contact the state or federal government and ask them to verify the debt. If it is verified then you will have to negotiate payment to remove it.
If you have a large debt you should speak with a tax attorney or negotiator to help work out some form of repayment. Frequently you can pay a reduced amount, and when 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.
However once you pay in full, wait three months and dispute the mark again. It has been learned that frequently the government will ignore future validation requests from the bureaus once a lien is paid.
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.
When the government decides to accept your OIC or not they will look at your; ability to repay, your assets, and your income. It can help your cause if you send a letter pleading financial hardship.
It can help to have a tax negotiator though it is not essential.
In sum, take action today and get this lien off your report. It will be hard to be approved for credit with decent terms as long as this mark is on your credit. Don't just wait seven years.
The first step is to have the bureaus validate the lien. You need to send each bureau a dispute letter.
Surprisingly it is not out of the ordinary for incorrect information to be reported on your credit. It is estimated that 1 in 4 people have inaccurate information on their report.
When your letter is received then the bureau will contact the state or federal government and ask them to verify the debt. If it is verified then you will have to negotiate payment to remove it.
If you have a large debt you should speak with a tax attorney or negotiator to help work out some form of repayment. Frequently you can pay a reduced amount, and when 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.
However once you pay in full, wait three months and dispute the mark again. It has been learned that frequently the government will ignore future validation requests from the bureaus once a lien is paid.
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.
When the government decides to accept your OIC or not they will look at your; ability to repay, your assets, and your income. It can help your cause if you send a letter pleading financial hardship.
It can help to have a tax negotiator though it is not essential.
In sum, take action today and get this lien off your report. It will be hard to be approved for credit with decent terms as long as this mark is on your credit. Don't just wait seven years.
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posted by Credit Counseling at
6:27 AM
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