A federal tax lien can remain indefinitely on your credit report. Fortunately, these liens can be withdrawn from it.
According the Internal Revenue Service, paying the full amount of your tax debt “is the best way to get rid of a federal tax lien. The IRS releases your lien within 30 days after you have paid your tax debt.”
However, a withdrawn lien may show up as “paid” on your credit report for up to seven years, which could hurt your credit score. If you have paid a federal tax lien in full, then you should notify the credit-reporting agencies of your new status and ask the lien to be removed.
If you find yourself in this situation and are interested in buying or refinancing a home, call us at 813-707-6200. If you find yourself in this situation, please consult the following links from the IRS and a tax specialist.
- Video On Lien Notice Withdrawal: http://www.irsvideos.gov/Individual/IRSLiens/LienNoticeWithdrawal
- Formal Application For The Withdrawal Of Federal Tax Line: http://www.irs.gov/pub/irs-pdf/f12277.pdf
- Selling Or Refinancing When There Is An IRS Lien: http://www.irsvideos.gov/Professional/IRSLiens/LienSeg1_3
- Instructions On How To Apply For Discharge Of Federal Tax Lien: http://www.irs.gov/pub/irs-pdf/p783.pdf
- For More Helpful Information From The IRS: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Understanding-a-Federal-Tax-Lien