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How To Stop Foreclosure
Cashing In On Flash Sales

How To Remove Tax Liens From Your Credit Report


Over the years, has done numerous articles on the topic of credit repair. Here is a list of some of our most popular articles on this topic -

Secured Credit Cards, The Magic Bullet For Raising Your Credit Score

Credit Scoring Secrets - What They Don't Want You To Know

How A Small Medical Bill Can Destroy Your Credit

Three Secrets The Credit Industry Does Not Want You To Know 

Get Your Credit Report For Free.  No Trials, No Scams, No Kidding

The Fast Track To Rebuilding Your Credit After Foreclosure Or Bankruptcy


Even for those that are not interested in good credit for the purpose of borrowing at favorable rates, in many states your insurance rates can be partially based on your credit score.  It was also interesting to note from the recent George Zimmerman trial how he was turned down for a police officer position due to his credit score.  Many people are shocked to learn that a good credit score also can play a role in their employment search.

How Tax Liens Can Affect Your Credit

Tax liens have long been considered one of the seven deadly credit sins.  Some experts believe that a tax lien can cost you between 50 and 100 points on your credit score.  What makes matters worse, is that there is no time limit under which a tax lien must be removed from your credit report.  This means that one single tax debt can stay with you for decades.  Here is what is even crazier; even after you pay the taxes you owe the lien still shows on your credit file.  Yes, it shows up as a paid tax lien, but still shows up nonetheless (and costs you points).

How To Remove A Paid Tax lien

LienreleaseBy completing IRS form 12277 you can get the IRS to withdraw a tax lien after the tax has been paid.  I have had questions about if this works for an expired tax lien (after ten years has passed) and I honestly don't know, but you don't really have anything to lose to try it. This form can be completed by an accountant or by an individual taxpayer.

A common misconception is that once a tax lien is paid off it has no affect on a credit score.  While it is true that an unpaid lien will cause more damage, even a paid tax lien will cost you points.  The other issue is that when a human being is reviewing your report (yes this still happens on occasion), they may not take the time to see that the status of the lien is paid.  As a result, they may not even take your loan application to the next step in the process.

The bottom line is that getting a federal tax lien withdrawn by the IRS will boost your credit score and the overall 'appearance' of your credit file.

An Easy Way To Pick Up 50 to 100 Points In Your Credit Score

One tactic that has worked for years is to obtain a secured credit card and maintain a low balance for about 90 days.  In most cases this will boost your score by at least 50 points.  More information on secured credit cards here.  For more information and strategies on boosting your credit score, check out my eBook available on - Credit Scoring Secrets.

If you would like to share your own strategies on improving credit or have a question, please use the comments section below and we can start a conversation.

Helping you make the most of God’s money!

James L. Paris 
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