What You Need to Do When a Tax Lien Appears on Your Credit Report | Axiom Tax Resolution Group

If you don’t pay the taxes you owe to the government, the government may assign a tax lien on your assets. The said tax lien allows the country, state, or federal government to take possession of it. In general, a tax lien gives the government a guarantee that you will pay any debt you owe to creditors. 

The government will only remove the tax lien if the taxpayer settles on a payment plan or any other agreement. If they take no action to repay the taxes, the government will seize all their assets.

Address the Problem

The best way to improve your credit standing when you have a tax lien is to pay it in full and as soon as possible. That way, you can stop the Internal Revenue Service (IRS) from filing a tax lien against you. If you fail to pay your taxes in one go, you can set up a payment plan or installment agreement with the IRS. 

The IRS offers a short-term payment plan when you pay within 180 days. They can also provide long-term installment options. If you agree to one of these arrangements, a tax lien will not be filed against you as long as you do not default on payments.

The bottom line is, the government wants you to address it rather than ignore it. They want you to pay your taxes. And if you need assistance, you can enlist the help of a tax relief solutions company to assist you in negotiating with the IRS. 

Know It Appears Publicly

It is essential to know that a tax lien is a public record. If you receive a tax lien, you can expect it to be part of the public records of your credit report. It is one of the most negative credit reports, and it will reflect poorly on your credit score. If you have this on your credit score, it may be difficult for you to find employment, secure rent, receive approved loans, and get credit cards. 

Paid tax liens can stay in your credit report for seven years unless the IRS withdraws them. 

Once the IRS withdraws your tax lien, no hint of its existence should appear on your credit report. But if mistakes occur, you need to send credit bureau proof to have it removed. A tax resolution specialist can guide you with this. 

Work on Removing It

The best way to get rid of a tax lien is to pay your taxes on time. The IRS can remove it within thirty days if you can pay your taxes immediately and fulfill your tax obligations. But to qualify for this, you must have paid your tax returns for three previous years. 

Once you enter into a direct debit installment agreement with the IRS, you can also withdraw it. This method allows them to remove taxes from your debit account at scheduled intervals. However, eligibility depends on the amount you owe, which should be $25,000 or less. You also need to have made at least three consecutive payments.

There are other ways to solve this problem. But it is best if you consult a tax debt relief specialist to know the best option for you.


Paying your taxes can be scary. If you fail to do it on time, it can affect your credit score. And having a negative credit score can affect your way of life. But knowing these facts can help you give a rough idea of what is ahead of you.

Ignoring IRS tax problems can be a costly mistake. Should you encounter one, consider how a tax resolution specialist in Birmingham, AL, can help you solve your woes. At Axiom Tax Resolution Group, we endeavor to provide permanent solutions to clients’ tax problems with the IRS. Contact us today!