What will you do if you suddenly found out that you have two tax liens on your credit report and you did not know about them? If you are like many others, you’d probably freak out (as silently as you can when you are in a public place). This may not have happened to you yet, but if you continue to ignore your credit report, you just might have to face a similar problem. So it is important to know what to do if you need to remove tax liens from your credit report.
- Find Out If You Can Request for Tax Lien Withdrawal
There are three things you need to determine to find out if you are qualified to have your tax lien removed. First, you should have paid the entire amount that you owe and your lien released. Second, you have been religiously filing your returns: individual and business).Third, your federal tax deposits and tax payments are up-to-date. No late payments are accepted. If you answer to these qualifications, you can proceed to tip number two.
- Get a Fresh Start
This refers to the Internal Revenue System’s The Fresh Start Program, which gives taxpayers the opportunity to have their tax liens erased from their credit report despite the fact that the debt amount had not been fully paid yet. This won’t be easy, but at least you get a chance to eliminate the problem. You will have to visit the IRS office and fill up the Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien. Take note of all the questions, so you’ll answer them correctly. Then look for the part where you need to specify that you are applying for The Fresh Start program.
- Form 12277
What is Form 12277 of the Internal Revenue Service? This is the Application for Withdrawal. If your application gets approved, the IRS will file a form called Withdrawal of Filed Notice of Federal Tax Lien. Once the form is filed and you are given a copy of the document, you can start communicating with the IRS and request them to send a notice of the withdrawal to the credit reporting agencies.