Thursday, October 1, 2020

CAN I REMOVE A FEDERAL TAX LIEN FROM MY CREDIT REPORT?

To remove a tax lien from your credit file, you must submit an Application to Withdraw Federal Tax Lien using IRS Form 12277. However, in order for your application to be granted, there are several steps you should take before and after filing the form.


You’ll first need to get in touch with the IRS in order to negotiate a plan to repay the lien; it can only be removed once the tax debt is settled in full. Once it’s repaid, the IRS will automatically “release” the lien—meaning the balance will reflect as paid on your credit report. In order to have it removed completely, you must file Form 12277.


They’ll respond within 30-45 days to confirm (or deny) the withdrawal, but you’ll have to follow up with the credit bureaus afterward because the IRS will not notify them that the lien has been withdrawn.



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