How Do You Remove a Tax Lien?


Quick Answer

To remove a tax lien, first pay the outstanding lien, and then ask the credit bureaus to expunge the lien from the public records, advises Chron. However, the credit bureaus have the discretion to remove or not to remove the lien from the public records.

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Full Answer

To clear the outstanding lien tax, start by obtaining your credit report from AnnualCreditReport.com, as Chron.com states. Once you obtain the report, check the outstanding tax amount noted in the lien report and verify the figures with the state tax office. Work out a repayment schedule with the tax office.

After paying the balance in full, obtain a letter from the state tax office indicating the debt clearance. Notify the credit bureaus of the state tax repayment by writing a goodwill letter asking the bureaus to remove the lien from your credit report. In the letter, explain the reasons why you failed to pay the tax in time, including the problems you experienced, and indicate the remedial measures taken to address the failure. Be passionate and ask the bureaus to empathize. Attach supporting documents such as medical bill and disability award letters to the goodwill letter, send the letter to the credit bureaus and allow the bureaus time to respond to the lien removal request.

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