How to Remove a Federal Tax Lien From Credit Report
One method the Internal Revenue Service uses to collect monies owed is to file a federal tax lien against you. This lien will appear as a public record on your credit report. Once you pay it, the lien will remain on your report for up to seven years from the date paid. The Fair Credit Reporting Act (FCRA) limits the appearance of negative data on your report to seven years. If you have a federal tax lien on your report that is beyond the statue of limitations, you have the right under the FCRA to file a dispute with the bureaus and have it removed.
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Instructions
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Order your credit report. Under the Fair and Accurate Credit Transaction Act (FACTA), you have the right to receive one free credit report each year from the three bureaus: Experian, Equifax and TransUnion. You can order the report from annualcreditreport.com, the site created under FACTA. You can also order it from the bureau's website, by phone or mail.
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Check the report for errors. Read the "Public Records" section to ascertain if the tax lien is still present on the report. Updates to the credit bureau occur regularly so data may have changed since you last viewed it.
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File a dispute with the credit bureau. The online form allows you to indicate the tax lien you're disputing and the reason. You can also file a dispute by phone or mail. Mailed disputes should include a dispute letter detailing the item you're disputing, the reason and include any supporting documentation, if applicable.
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Print your dispute form if you filed it online. Also print a copy of your credit report. FACTA gives you one free report but if you access it online yet fail to print it, the bureau may charge you a fee to view it at a later date.
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Wait to receive the dispute results. Under the FCRA, credit bureaus have up to 30 days to investigate your dispute and make changes. Results of disputes filed online are sent to you via email. Results for disputes initiated by phone or mail are sent to you by regular mail. The bureau will also include an updated copy of your credit report that shows the removal of the tax lien.
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Tips & Warnings
Under the FCRA, unpaid tax liens can remain on your credit report for up to 10 years in California or indefinitely everywhere else.
Never order your credit report using a public or shared computer. It could lead to identity theft. Only use computers that you trust.
