Remove a IRS tax lien off your credit report in 10 STEPS
From a Credit Guy Fan Whizzy
I thought I’d add a few comments for removing a PAID tax lien from your credit report instead of waiting 7 yrs for it to age off. I just went through this process and the lien has been completely deleted from our credit reports so I know it works.
1) We finished paying off our taxes per our installment agreement with the IRS.
2) Received IRS form 668(Z), Release of Federal Tax Lien, automatically from IRS once they processed our final payment.
3) Located IRS form 668(Y), Notice of Federal Tax Lien, sent to us when the IRS initially filed the lien with our county. This is crucial as Dave mentions in this video because it has the serial number of your original case file with the courts. If you don’t have it, go to the IRS first, then the courts as Dave mentions.
4) Located IRS form 12277 online and filled it out. Made sure that I checked the box indicating that the request was in the best interest of the government and the taxpayer.
5) Located and printed a copy of the notice from the IRS Newsroom dated 2/24/2011 in relation to the IRS’s new policy to withdraw paid tax liens
6) I wrote a cover letter including who, what, when, and why in relation to our request for the tax lien to be withdrawn, including a list of the 3 credit reporting agencies we wanted to be notified. I made sure to note both my SSN # and my spouse’s SSN # because the tax lien shows up on both our credit reports.
7) I enclosed the IRS form 12277, copies of IRS forms 668(Y) and 668(Z), and a copy of the IRS newsroom document from 2/24/11.
8) In about 2-3 weeks, we received IRS form 10916(c), Withdrawal of Filed Notice of Federal Tax Lien. This was our golden ticket!!
9) Although I asked the credit bureaus to be contacted, my local IRS office (Denver) indicated that they normally don’t do that. The information is deleted from the county records and the credit reporting agencies normally just pull from there so I did one more step as follows to expedite the process and make sure it was done.
10) We each contacted the 3 credit bureaus, disputed the lien, and provided a copy of IRS form 10916(c) that we received from the IRS in step 8 above. The credit bureaus verified the information and voila… the lien was completely deleted from our credit reports as if they never existed in the first place.
You can also fax the 12277 form in as well. See this web page to see what office you need to send it to. Also includes fax numbers.
Woo hoo!! Refinance here we come… hopefully with a better FICO score.