Remove tax liens from credit reports with 5 simple steps

On Behalf of | Sep 28, 2018 | Tax Liens

Credit reporting is one way the Internal Revenue Service tries to get Connecticut residents to pay their taxes. When the IRS files tax liens, this information is sent to credit reporting companies and placed on one’s credit report, which can do a lot of damage to one’s already delicate financial situation. Those who have tax liens posted on their credit reports may have them removed by following these five simple steps.

Step number one: complete a tax lien withdrawal form. Known as IRS form 12277, it allows one to give written notice to the IRS about why removing the lien is in everyone’s best interest. When filling out this form, it is good to reference the information provided in the original tax lien notification, but doing so is not necessary for one’s request to be considered.

Steps two and three: file and wait. When filing anything with the IRS, one must wait for a response. Sometimes, responses can take much longer than one would expect. If the IRS is going to request the lien to be withdrawn, it will do so after 30 to 45 days after receiving and reviewing one’s withdrawal request.

Steps four and five: Request credit report removal and ask for final confirmation. If the IRS agrees to withdraw the lien, it is possible to contact credit reporting agencies immediately to request the lien be dropped from one’s credit report. This can result in the swift removal of the lien. Just be sure to ask for final, written confirmation of the removal in case there is an issue down the road.

There are never any guarantees that requests that tax liens be removed will be honored. There are no guarantees that credit agencies will remove tax liens in a timely manner. An experienced attorney may be able to assist Connecticut residents who are fighting tax lien issues resolve the problems swiftly and smoothly.