The short answer is yes. Anything that is inaccurate or unverifiable can be removed from your credit profile. However, with tax links, if it is not paid, you cannot avoid them. “They,” that is, the IRS. It can be easily re-reported on your credit report; Also, just because it’s not on your credit report doesn’t mean you no longer have to pay them.
It also doesn’t stop lenders from finding out that you have a tax lien and not granting you credit; Most subscribers do a link search before approving you for a loan.
The best method of permanent removal is to pay them in full (if you have the money); Negotiate an offer in compromise (fairly simple to do and the form with instructions is available on the IRS website; you can also hire an attorney or accountant to do it for you) or to make a payment arrangement.
Since 2011, the federal tax link codes changed and did not allow tax links under $ 10,000 to be included on credit reports.
Any tax link over $ 10,000 can be reported on a consumer’s credit report, but can be removed by entering into a payment agreement and making 3 consecutive successful automatic debit payments (Fresh Start Initiative). The link will be posted and removed from credit reports. I’ve only seen this happen for debts under $ 25,000, but according to the IRS website, people with debts under $ 50,000 are eligible. You will not be approved for this if you have other outstanding debts with the IRS. Once you have made your third payment (or final payment), you can go to the irs.gov website and complete form 12277; which is a withdrawal request. Interestingly, there are other factors that will also grant you approval, so I encourage anyone with unpaid tax links to seek guidance from the IRS website and then from a professional.
After completing from 1227, you will be notified of approval (not automatic) within 90 days. Some tax attorneys have obtained it in 2 days if you have money to spare. The letter will usually be mailed to you, and you can send it with a dispute letter to the credit reporting agencies for immediate removal. They report it to the credit reporting agencies, but updates can take forever to occur on your credit file.
Now, some credit specialist requires IRS validation to prove that the debt belongs to the consumer. Yes, this can be done as the IRS is a collector and not a government agency (it’s true! Look it up!). The thing to remember is this; They are a collector who works for the government! If you ask for validation, you can often wake up a sleeping giant, so to speak, and turn your life into a living life. Sometimes it is better to seek professional help.
If you don’t recognize a tax lien as yours, check your credit report, see which county clerk’s office is providing the information, and check the public record with that county clerk’s office.
If you have a debt that you are not sure if it has been paid or not; consult with an attorney and ask them to submit a Freedom of Information Act Request form for you (I’ve had clients contact the IRS directly and it didn’t go well!).
If it is an old tax bond, there is a limitation period of 10 years for the collection of that debt; however, there are also some exceptions to that rule.