Q:

How do you request an IRS tax lien to be removed?

A:

Quick Answer

To have the IRS release a tax lien, pay the tax debt in full, recommends the Internal Revenue Service. If you meet the qualifications, have the major credit reporting agencies remove the notice of the tax lien from your credit reports by filing IRS Form 12277, Application for Withdrawal, receiving a formal IRS notice of the withdrawal and using the notice to inform the credit reporting agencies of the change, explains Fox Business.

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Full Answer

By federal law, credit reporting agencies do not need to remove unpaid tax liens from credit reports, but they must remove paid liens after seven years, according to Fox Business. You qualify for early removal of your tax lien if you have paid off the tax debt, you are up to date on your current tax payments and you have filed your tax returns correctly for the past three years. As of 2015, if you have not paid back the debt but don't owe more than $25,000, you may still be able to have the credit reporting agencies withdraw your lien if you initiate direct debit installment payments with the IRS.

After you have received the IRS notice of lien withdrawal, ask the IRS to send copies to the credit reporting agencies, or inform the agencies yourself, advises Fox Business. To monitor the effect of the lien withdrawal on your credit score, obtain your credit score both before and after the credit reporting agencies remove the lien.

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