If you have a tax lien being reported on your report you score is in serious trouble. You should remove this item as soon as possible.
The first step is to request validation from the bureaus. This is done through sending a dispute letter directly to each.
It is not uncommon for wrong information to be reported on your report. This is because mistakes do happen and it is as easy as dialing a wrong phone number.
Upon receipt of your letter the bureau will investigate the mark. They will contact the state or federal government and ask for verification that the debt does exist. If it is verified then you will have to make some form of payment.
It may be in your best interest to talk with a tax negotiator to work out a settlement with the government. You can often pay a reduced amount, and once paid you can remove it from your report.
This debt can be collected on for 10 years. It will be reported on your report for 7 years once it is paid.
Upon payment you should wait around 3 months and then send another dispute letter to the bureaus asking for validation. We have learned that once the government has received payment they often will ignore a bureaus request for validation.
This means your tax lien will not be verified and the bureau will erase it from your report. However if this mark is incorrect to start with you can demand proof that the account is yours, and send any documentation you have to prove your side.
Repayment
The IRS and state government often accept partial payment. To propose this to them you will make an offer in compromise, often called an OIC.
When the government decides to accept your OIC or not they will look at your; ability to repay, your assets, and your income. It can help your cause if you send a letter pleading financial hardship.
It can help to have a tax negotiator though it is not essential.
In sum, you can remove a tax lien and other negative marks from your credit report. You do not just have to live with bad credit.
The first step is to request validation from the bureaus. This is done through sending a dispute letter directly to each.
It is not uncommon for wrong information to be reported on your report. This is because mistakes do happen and it is as easy as dialing a wrong phone number.
Upon receipt of your letter the bureau will investigate the mark. They will contact the state or federal government and ask for verification that the debt does exist. If it is verified then you will have to make some form of payment.
It may be in your best interest to talk with a tax negotiator to work out a settlement with the government. You can often pay a reduced amount, and once paid you can remove it from your report.
This debt can be collected on for 10 years. It will be reported on your report for 7 years once it is paid.
Upon payment you should wait around 3 months and then send another dispute letter to the bureaus asking for validation. We have learned that once the government has received payment they often will ignore a bureaus request for validation.
This means your tax lien will not be verified and the bureau will erase it from your report. However if this mark is incorrect to start with you can demand proof that the account is yours, and send any documentation you have to prove your side.
Repayment
The IRS and state government often accept partial payment. To propose this to them you will make an offer in compromise, often called an OIC.
When the government decides to accept your OIC or not they will look at your; ability to repay, your assets, and your income. It can help your cause if you send a letter pleading financial hardship.
It can help to have a tax negotiator though it is not essential.
In sum, you can remove a tax lien and other negative marks from your credit report. You do not just have to live with bad credit.
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