The Derogatory Effect Of Having A Tax Lien Put Against You

Having a tax lien put against you that shows on your credit or against your property can truly be one of the most complicated credit problems that you ever deal with. The Internal Revenue Service can be rather brutal when it comes to being paid their money and there is a basis for the old saw about “death and taxes” because you are not liable to be able to get out of it entirely without paying at least a percentage of it.

If you are a real estate title-holder, the tax lien will be put against the real estate. You will not be able to sell the property without satisfying the tax lien and it is even possible that eventually the real estate could be confiscated. If you do not own real estate the tax lien will still show on your credit report and you will not be able to get a home loan, a car loan, student loans and maybe even credit cards. A tax lien essentially destroys your credit.

It is very unusual that somebody gets out of a tax lien completely. Usually the best thing that can happen is that you are able to negotiate to pay a lesser sum to comply with the debt. However, even after it is paid off it is possible that it may still remain on your credit report for as long as 7 years. If it never gets paid it could stay on the report for as long as 15 years but the Internal Revenue Service can restart the lien so it is possible that you could have a tax lien on your credit report forever if you don’t pay it off.

In nearly every case you are much better off to pay off the tax lien rather than fight it. You may be able to negotiate for a lesser amount and you should try to do that. However, the Internal Revenue Service will locate you and you will almost certainly not be able to get away with not paying the taxes that you owe.

After the tax lien has been fulfilled, you will need to try to get the derogatory listing removed from your credit report. As you are negotiating with the Internal Revenue Service, request if they will delete the lien from your credit report after it is paid. If that doesn’t work you can dispute the bad listing.

You will need to write a letter or dispute to all of the three chief credit-reporting bureaus. In the United States, they are Equifax, Experian and TransUnion. You have the right to dispute any bad listing on your credit report because of the Fair Credit Reporting Act. If the tax lien has been paid and is displaying as paid in full you may be able to get it deleted.

Keep accurate records of all correspondence between you and the credit bureaus. They have between 30 and 45 days after receipt of your letter to either substantiate the accuracy of the listing or remove it. You are hoping that they delete it. If they do not do it the first time around, offer another letter and another letter until you get the outcomes you want.

Writing letters of dispute and doing other credit repair tips can be very constructive for you and your financial life in the long run. You can do it yourself or take on a professional but you are accountable for knowing and contending with whatever shows on your credit report and if you need to do some credit repair, it is better to do it sooner rather than later when you need to have good credit.

To learn about fast credit repair and about tax liens credit report stop by http://724Credit.com.

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