How to Get Rid of an IRS Tax Lien

The IRS has the right to place tax liens on your property if you owe federal taxes (Federal Tax Liens). While some may be able to prevent the IRS from putting a lien on their property, others are not so fortunate. IRS tax liens can be a burden if you are trying to obtain credit or sell your property.

Instructions

How to Remove an IRS Tax Lien

1

Negotiate with the IRS to get an installment agreement. This agreement will allow you to pay a down payment on the taxes that you owe and pay off the debt by making monthly payments. If you enter into an installment agreement and maintain your end of the deal, either immediately or within a certain time period, the IRS may remove the tax lien. However, if you fail to meet your obligations, the IRS may file the tax lien again, and you may not be so fortunate to receive a deal such as an installment agreement.

2

Pay or settle the tax lien. If you have the ability to do so, pay the debt owed to the government. If not, get in contact with the IRS, which can be done by visiting their website www.irs.gov or calling them at 1-800-829-1040, and see if they are willing to settle the debt (IRS). In this case, the government may be willing to take a portion of the taxes owed and mark the tax lien paid or settled. Either way, you may be able to obtain credit more easily, as well as sell your property, without any funds having to be paid to the government.

3

Submit a dispute to the credit bureau agencies. If your tax lien is paid and it is not showing this on your credit report, you need to have it removed. Under the Free Credit Reporting Act, the credit bureau agencies are obligated to investigate any dispute you send to them. If you send in receipts showing you paid or settled the debt, the credit bureau agencies must mark the tax liens paid or remove them from your credit report. This will prevent lenders from knowing if you have had a tax lien. Even if the tax lien is not paid or settled, you may be able to remove the tax lien from your credit report. To do so, you can send in a dispute to the credit bureau agencies to investigate the tax lien. If the government does not provide validation of the debt you owe within 30 days, the credit bureau agencies must remove the tax lien from your credit report.