cancel
Showing results for 
Search instead for 
Did you mean: 

Tax lien removal... Please explain

tag
luckelle
Regular Contributor

Tax lien removal... Please explain

Can someone please explain if there is a change that will compel credit bureaus to remove a tax lien. How would that process need to be presented to the agency would be helpful as well. I read something, but need layman terms please, thanks.

Starting Score: 5/2012 TU 595, EQ 565, EX fako 547
Current Score:as of 9/2012, TU 626,Walmart 612, EQ 600, EX fako 623
Goal Score: 640 by dec 2013
BofA Au 13000, Amazon 600, Capt1 300, Walmart 150
When all else fails pay it!


Message 1 of 3
2 REPLIES 2
RobertEG
Legendary Contributor

Re: Tax lien removal... Please explain

A tax lien finds its way into your credit report via its posting as a public record by the taxing agency.

The removal can be obtained in one of two basic ways.

 

First, by contesting the accuracy of the lien itself.

If you feel that there is no tax obligation, then pursue with the taxing authority via whatever dispute or appeal procedure is appropriate.

If they agree that you do not owe the tax, they will then be required to remove the lien from the public record.

If that is your outcome, you then simply notify the CRA of its deletion, and the CRA will then update its review of the public record, and if it has indeed been removed, then it will be deleted from your credit report.

 

Second, exclusion of a tax lien from your credit report is required no later than 7 years from the date it is paid.

If the lien is accurate, then pay it, and the 7 year clock begins to tick.

The CRA must monitor the date paid, and ensure that it is not included in any credit report they issue after 7 years from the date paid.

Message 2 of 3
Anonymous
Not applicable

Re: Tax lien removal... Please explain

Luckelle

If Federal lien there is a way to settle and have it removed sponsored by Gov. Goggle it. You'll find the process.

If state lien, head over to the 'credit in the news' forum and there's a thread there regarding the 'new' CRA handling of liens judgements etc.

From what I gather you can mange to get the line removed from your report however your financial obligation will not be erased and if you apply for a mortgage it will be found and you'll have to pay it.
Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.