With a tax lien on your credit report your score will be dramatically affected. You should take action to erase this mark from your report.

The first step is to have the lien validated; you must do this directly with the bureau. Simply send them a letter and ask them to validate the debt.

Surprisingly it is not out of the ordinary for incorrect information to be reported on your credit. It is estimated that 1 in 4 people have inaccurate information on their report.

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.

Depending on the amount you owe it may be in your interest to contact a tax negotiator. This is because they can often negotiate a reduced payment for you. However you can also negotiate directly with the government.

A tax lien can be collected upon for 10 years, and will stay on your report for 7 years once it is paid. If not paid then you can be reporting a tax lien on your report for a considerable amount of time.

Once you pay your lien in full, we suggest you wait 3 months and then dispute the mark with the bureaus again. It has been learned that once payment is made the tax departments will frequently ignore validation requests from the bureaus.

Thus your lien will not be verified and the bureaus will remove it from your report. Additionally if this mark was make in error then send any documentation along with your dispute letter to prove that.

Repayment

The state and federal government are willing to negotiate and settle on a reduced payment. It is called an OIC (offer in compromise), this just means that the government is accepting partial payment.

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 may be in your interest to hire a tax attorney or negotiator to help negotiate a repayment amount. It is not absolutely necessary but nonetheless a good idea.

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.

For a free credit consultation call 1-866-246-7311 or for a free credit repair e-book visit us.

We also have free credit repair letters used to dispute the bureaus and info on how to improve credit score.