If you do not manage your creditors well, then you are likely to face a tax lien as they do everything possible to collect the money that you own them. It is imperative that when you have creditors, you get the services of a credit repair professional like those from Discount Credit Repair. They are able to embark on negotiations for you so that you can manage your creditors or keep them at bay.
Why Do You Need Credit Repair to Manage Tax Liens?
With a tax lien, you are between a rock and a hard place when it comes to your credit. It is not possible for you to sell a large asset like your home, and it is also not possible for you to get some access to new credit. A tax lien on your report communicates that you are unable to manage your finances and do not have the ability to pay your debts. This will have an effect on your credit score and it could drop by up to 100 points. There is one excellent way that you can deal with tax liens, and that is to simply pay them off.
Steps to Take to Remove a Tax Lien
For credit repair, you need to remove your tax lien. You need to pay it off and then ensure that it is withdrawn or released. If you do not follow this up, it can take seven to ten years for the release to be done. You can also take steps towards the Fresh Start initiative that has been laid out by the federal government. You need to find out if you qualify for your lien to be withdrawn which will happen if you have been in compliance for the previous three years and are current on your tax payments. If you owe less than $25,000 you can get into an agreement for automatic payments to the IRS and this will mean that you do not need to receive a tax lien. Then you have to fill out the one page IRS form which is an application for the withdrawal. When you do so, you have something in writing which makes it much easier to process.
When you have your tax lien withdrawn, it will be as if it never existed and will not reflect on your credit report. With Discount Credit Repair, this can be accomplished.