Remove Tax Lien
If you have a tax lien on your credit report, you should take immediate action to remove it. This is a very bad mark and will lower your score considerably.
The first step is to request validation from the bureaus. This is done through sending a dispute letter directly to each.
Surprisingly it is not out of the ordinary for incorrect information to be reported on your credit. It is estimated that 1 in 4 people have inaccurate information on their report.
Upon receipt of your letter the bureau will investigate the mark. They will contact the state or federal government and ask for verification that the debt does exist. If it is verified then you will have to make some form of payment.
It may be in your best interest to talk with a tax negotiator to work out a settlement with the government. You can often pay a reduced amount, and once paid you can remove it from your report.
This debt can be collected on for 10 years. It will be reported on your report for 7 years once it is paid.
Upon payment you should wait around 3 months and then send another dispute letter to the bureaus asking for validation. We have learned that once the government has received payment they often will ignore a bureaus request for validation.
Thus your lien will not be verified and the bureaus will remove it from your report. Additionally if this mark was make in error then send any documentation along with your dispute letter to prove that.
Repayment
The state and federal government are willing to negotiate and settle on a reduced payment. It is called an OIC (offer in compromise), this just means that the government is accepting partial payment.
The government will decide to accept based on; your income, assets, ability to repay, expected amount they will recover. It can help if you send in a letter explaining your financial hardship that led up to this.
It can help to have a tax negotiator though it is not essential.
In sum, you can remove a tax lien and other negative marks from your credit report. You do not just have to live with bad credit.
The first step is to request validation from the bureaus. This is done through sending a dispute letter directly to each.
Surprisingly it is not out of the ordinary for incorrect information to be reported on your credit. It is estimated that 1 in 4 people have inaccurate information on their report.
Upon receipt of your letter the bureau will investigate the mark. They will contact the state or federal government and ask for verification that the debt does exist. If it is verified then you will have to make some form of payment.
It may be in your best interest to talk with a tax negotiator to work out a settlement with the government. You can often pay a reduced amount, and once paid you can remove it from your report.
This debt can be collected on for 10 years. It will be reported on your report for 7 years once it is paid.
Upon payment you should wait around 3 months and then send another dispute letter to the bureaus asking for validation. We have learned that once the government has received payment they often will ignore a bureaus request for validation.
Thus your lien will not be verified and the bureaus will remove it from your report. Additionally if this mark was make in error then send any documentation along with your dispute letter to prove that.
Repayment
The state and federal government are willing to negotiate and settle on a reduced payment. It is called an OIC (offer in compromise), this just means that the government is accepting partial payment.
The government will decide to accept based on; your income, assets, ability to repay, expected amount they will recover. It can help if you send in a letter explaining your financial hardship that led up to this.
It can help to have a tax negotiator though it is not essential.
In sum, you can remove a tax lien and other negative marks from your credit report. You do not just have to live with bad credit.
posted by Credit Counseling at
4:11 AM
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