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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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Experience:  10 years experience
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Question, J.D. I have a friend who just got a tax lien of

Customer Question

Question for Lane, J.D.
I have a friend who just got a tax lien of about 39k with his ex wife. Does this usually show up instantly on his credit? He was trying to make a major purchase and acquire new credit. Is the tax lien something that usually shows up on his credit instantaneously? Does he maybe have a "window" before it shows up? The lien is very contestable and appears to be a largely a result of slipshod tax preparation and an amended return will wipe out most o this debt. If the lien is contested and any ba***** *****dled, how will this effect the negative credit impact? Is it likely to be a quick recovery in credit? Any wise strategies to implement to mitigate the negative credit impact?
Submitted: 10 months ago.
Category: Tax
Expert:  Daniel Melnyk, Esq replied 10 months ago.

When an unpaid tax liability of $10,000 and over accrues, the IRS will file a notice of federal tax lien. The credit agencies pick up on this rather quickly. The best way to get rid of the lien is to satisfy the debt through payment or correction and to file a IRS form 12277 for withdrawal request. Then notify the credit agencies of the situation. The lien may stay on the credit report for 7 years and will have a negative impact.

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