According to John Ulzheimer, the credit bureaus will be removing most tax liens from consumer’s credit reports  starting in April 2018. This means American’s with federal tax liens may see a credit score increase.

A Federal Tax Lien is where the IRS lets the world know that you owe them money. The place the Notice of Tax Lien in the county public records in which you live. When the credit bureaus remove the tax lien information from the credit bureau it may raise the credit score but it does not remove the notice of tax lien filed in the county public record.

You may still need to resolve the tax lien with the IRS in order to purchase a home, qualify for an SBA loan, etc. Just because the tax lien is not on the credit report does not mean the IRS can not aggressively collect passed due taxes.

Before the credit bureaus agreed to remove tax liens from the credit reports, a consumer would have to apply for a Tax Lien Withdrawal using IRS form 12277. The process of removing a tax lien from the credit report used to time consuming. Many consumers hired law firms and their CPA a great expense to remove the tax liens.

If you have issues with the IRS or credit report issues, please contact our law firm at (214) 506-2500 or cs@texascreditlaw.com