Tax Lien Removed from Credit Report

Tax Lien Removed from Credit Report

IRS has announced a new policy that will significantly reduce the number of tax liens on properties owned by delinquent taxpayers. The IRS has raised the minimum amount of tax debts that prompts the filing of a tax lien from $5000 to $10000, and for those owing $25000 or less, the IRS will make it easier to obtain lien withdrawals once a taxpayer pays off the debt or sets up a payment plan that end in full repayment. Also the procedure is streamlined so it can be removed from your credit report faster (not instant, but faster).

CPA’s can implement this, so no court filing is needed. The only way this can be done by requesting the withdrawal to the IRS in writing after fully paying or agreeing to direct debit installment agreement. Liens will be withdrawn after probationary period demonstrating that he/she is capable of direct debit payments will be honored.

Under the new policy the borrower’s credit report will be wiped clean and his credit report improved. It can increase the borrower’s credit score by more than 100 points, which can significantly alter someone getting a loan and saving thousands of dollars in monthly mortgage payments.

If a client settles for less then what the full debt owed is, they will not be eligible for the withdrawal of lien. Recheck your credit within 30 days to make sure the bureaus have updated the new IRS information on the credit profile. If it still shows up, an accountant should seek out a credit restoration company to get the lien removed.