Amazingly enough, you can remove a Federal Tax Lien from your credit report years before it would be scheduled to fall off on it’s own. The IRS allows the deletion from your credit report, but there are a couple easy steps to take to do this. Within 30-60 days you can have it removed, and here’s how you do it.
1) Pay off your taxes per our installment agreement with the IRS.
2) Received IRS form 668(Z), Release of Federal Tax Lien, automatically from IRS once they processed our final payment.
3) Locate IRS form 668(Y), Notice of Federal Tax Lien, sent to you when the IRS initially filed the lien with your county.
4) Located IRS form 12277 online and fill it out. Made sure to check the box indicating that the request was in the best interest of the government and the taxpayer. Enclose the IRS form 12277, copies of IRS forms 668(Y) and 668(Z) and mail it in to the IRS.
5) In about 2-3 weeks, you’ll received IRS form 10916(c), Withdrawal of Filed Notice of Federal Tax Lien. That is your golden ticket!!
6) Mail the 10916(c) letter to all 3 credit bureaus along with a letter requesting the deletion of the lien from your credit report. Make sure to include a photo ID and utility bill (proof of address) in the letters as they are needed to identify you to the bureaus.
Public records filings on a credit report (tax liens, judgements, bankruptcy) are a major derogatory. They can have over 100 point impact to your credit scores. Once the negative item is removed you will see a significant improvement to your credit scores!
Thanks for taking the time to read my latest post. If you need more advice on how to raise your credit scores feel free to contact me direct at firstname.lastname@example.org.
President and Certified Credit Expert