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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55444
Experience:  29 years of experience as a tax, real estate, and business attorney.
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how do I get a paid, released tax lien removed from public

Customer Question

how do I get a paid, released tax lien removed from public records and therefore removed from my credit reports?
Submitted: 4 years ago.
Category: Tax
Expert:  Richard replied 4 years ago.
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good morning. What kind of tax lien is it....IRS, NJ, or property tax lien? Thanks.
Customer: replied 4 years ago.

sorry IRS tax yrs 2007,8,9

Customer: replied 4 years ago.

irs tax yrs 2007,08,09

Expert:  Richard replied 4 years ago.
Thanks for your reply. The IRS is set up to automatically cause liens to be released within 30 days of full payment of the outstanding tax obligations. Releasing a federal tax lien means that the lien no longer encumbers your property. Upon releasing a lien, county records will be updated to reflect that the lien has been released. If the IRS has not actually released the lien, then you can contact the IRS and will cause the lien to be removed. Unfortunately, however the fact that there was once a federal tax lien will remain on your credit report for up to ten years. So, although the credit report will show the lien satisfied, the fact that it existed will remain for the ten year period. If the IRS does not update the report to show the lien satisfied, you will have to dispute the information. Once you dispute it, the credit reporting agency is required to investigate the dispute by sending it back to the IRS for verification. If the IRS verifies that the account is being reported correctly, the negative information will stay on your credit file. If the IRS never responds to the investigation, then after about 30 days, the credit reporting agency must either delete the report from your file or report it as not being delinquent. If however they fail to do so, you will need to get a court order and then send the judge’s order to the credit agency to get it removed.

This is the part of my job I don't like...when the law is not in favor of my customer. I wish I could tell you it was removed entirely when the tax debt was paid, but I can only provide you information based on the law so that you can act on the best available information to you. ………..I wish I had better news, but can only hope you recognize and understand my predicament and don't shoot the messenger. I'm sorry!

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer. If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service with 3, 4, or 5 faces/stars so I can receive credit for helping you today. I thank you in advance for taking the time to provide me a positive rating!

Customer: replied 4 years ago.

I was under the impression it is up to the descreation of the IRS to remove lien and futher emphazied in a repayment plan acceptance which has been in place since July 2011?? "We will release (remove) the lien when you finish paying whar you owe." Based on that how do I proceed?

Expert:  Richard replied 4 years ago.
You are is the IRS' obligation to release its lien once paid. Once you have agreed upon an installment obligation, the IRS can, but is not obligated, to remove the lien prior to full payment. If you have fully paid and the IRS has not released its lien, contact the IRS immediately and when you get someone on the phone, fax them the documentation that the obligations have been paid in full and request them to file the release of lien...which should have been released by the IRS automatically. If there is any problem, the IRS has a problems resolution division that you can call to get this done. To access that call the IRS Problem Resolution Hotline at 1-877-777-4778.
Customer: replied 4 years ago.

That still does not aswer my original question: how do I proceed with having IRS REMOVE the paid tax lien from public records and from the crdit reporting agencies???

Expert:  Richard replied 4 years ago.
As I mentioned, the lien that was paid will remain on the credit reports for 10 years unfortunately. The IRS should have filed a lien release in the real property records of the county in which the property is located. If they did not do so, you should call the IRS Problem Resolution Hotline to get them to file the release of lien evidencing the removal of the lien. If they fail to do so, you can file a suit to quiet title and ask the court to order it removed from the public records.

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