How to Remove an IRS TAX LIEN from your Credit Report

Sometimes it’s so excruciating to learn that your loan application was disapproved because of a negative credit rating which had been settled several years ago. Ironically, paid-off negative items stay in your credit file and is allowed by law even after you’ve paid them.

Sometime in the past, the IRS Tax Liens that had been paid continue to appear on your credit reports for seven years. However, the IRS has taken steps to change that and there is now a system in place that removes federal tax liens from your credit file as soon as possible.

TAX LIEN SEMINARS has prepared the following simple steps to assist you secure a clean slate on your Credit Report:

COMPLETE IRS FORM 12277 : This form serves as a request for withdrawal of the original tax lien. Before filling out this form, try to locate the Form 668(Y) you were sent by the IRS as notification of the original tax lien. This can help to expedite the process. However, you can still fill out this form if you don’t have the 668(Y). For question 11 on the form, select the option that says: “The taxpayer or the Taxpayer Advocate acting on behalf of the taxpayer, believes withdrawal is in the best interest of the tax payer and the government. “ For question 12, enter the words, “Fresh Start Program”
Send IRS FORM 12277 to the IRS : Use IRS publication 4235to determine the regional IRS where your form should be mailed. Send your form via certified mail. Wait for response from IRS : After 30-45 days, the IRS will contact the court house where the lien was filed to notify them to withdraw it. You will also be sent a copy of this notification.
Wait for response from IRS : After 30-45 days, the IRS will contact the court house where the lien was filed to notify them to withdraw it. You will also be sent a copy of this notification.
Dispute the lien with the Credit Reporting Agencies : When you dispute a tax lien with Equifax, Experian or Trans Union, they contact the courthouse where the lien was filed to determine if the information is still accurate. Since the courthouse has been notified that your lien was withdrawn, by disputing the lien with the above Credit Reporting Agencies at their respective websites, you should be able to have the lien removed quickly.
Final confirmation : Each of the credit reporting agencies will send you a notification of how your dispute turned out. If the lien was not removed from any or all of your reports, file a second dispute in writing and include a copy of the notification from the IRS that your lien has been withdrawn.
Tax liens on a credit report will definitely affect your credit score significantly and can also be the basis of a lender to approve or deny you a loan or a credit card. Having them removed from your credit reports as quickly as possible is imperative. If you any problems with unpaid liens visit IRS.gov to know your best course of actions.