Tax liens
are public documents, so everyone—including credit bureaus—can search for
existing liens in the database. These documents get included in credit reports
almost immediately and do not get removed unless the liens are fully paid. Even
if after you have paid your dues, it will take seven years before liens
disappear from your credit report completely.
The IRS,
however, releases liens much more quickly at 30 days. If the IRS fails to meet
the 30-day period, the taxpayer has the right to ask for a Certificate of
Release of Federal Tax Lien via phone or mail. To request for the certificate,
enclose a formal letter of request for release and any proof of payment of the
lien, namely an IRS receipt.
The sooner
you take care of tax liens, the less impact they’ll have on your credit score.
You can send a copy of the certificate to the three major credit bureaus:
Experian, TransUnion, and Equifax. With any luck, they can remove the liens
from your credit history and update your credit report accordingly earlier than
expected.
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