The question of how long a tax lien stays on a credit report is quite multi-dimensional. What makes the subject even more interesting is the fact that as from the 6th of April 2018, the three major credit bureaus – Equifax, Experian, and TransUnion, no longer report tax liens on a consumer’s credit report. This development, however, doesn’t change the fact that you will still have to resolve a tax lien whenever one arises.
The fact that tax liens no longer show up on credit reports is a great advantage because it means that tax liens will no longer be able to negatively impact your credit score. This protects the financial stability of the individual and the integrity of the report.
However, the fact that the bureaus took this step towards removing tax liens from credit reports does not mean that one should become complacent about a tax lien that has been placed on their assets. For one, the rule may change at any time, and tax liens will become a part of credit reports again. This possibility in addition to the fact that a tax lien gives the government a legal hold over your property is more reason to get rid of a tax lien as quickly as you can. First, we shall examine what a tax lien means.
What does it mean to have a Tax Lien placed on your assets?
A tax lien is a measure taken by the IRS to recover delinquent tax debts. If a tax lien is placed on your property, it doesn’t mean that the IRS intends to cease it. What it simply means is that the IRS will get the first share of whatever profits are recovered from the asset. A tax lien is automatically filed by the IRS when the amount you owe in debts is $10,000 or more, and it can stay on your property for up to ten years; therefore, it is important to address it as soon as one arises.
What to do about a Tax Lien
If a tax lien is placed on your assets, the best option available to you is to seek the services of a qualified tax professional. We are a tax relief firm dedicated to giving you the best results regarding resolving your tax debts. Our team of qualified professionals is available round the clock to provide you with the assistance you need. Contact us now at 888-585-8629 or 617-430-4674 or send us an email at help@newstarttaxconsulting.com.
We can help you ensure that the tax lien placed against you is withdrawn by applying for the Fresh Start Initiative on your behalf. Contact us now for a free case review.
For more information, email info@newstarttaxconsulting.com
