IRS Liens Are Devastating to your Credit Score

Having tax lien placed upon you can have a massive negative impact on your credit score.  Think foreclosure, repossession, eviction …. these are similar major events that will haunt your credit report for the full 7 years. Even when released by the government, the damage is done …. or is it?   The IRS now has some new, and in my opinion quite generous, alternatives for having liens withdrawn (also known as revoked).  Of course you have to qualify and your request has to be presented in the correct light, but this new program “Fresh Start” could be just the thing for tens of  thousands of taxpayers.   And since the program is new, and potentially the policies haven’t been fully tested through the IRS system, now is the time to make the request before the IRS brass decides to tighten up the ‘nuts’.   You can’t do this with a foreclosure or short sale, but you now can with a tax lien.   Depending on the amount, your credit history, the debt relative to others debts a withdrawn lien can increase your credit score 100 points or more.  You don’t even have to have the liability paid in full to apply.   Very generous indeed.

Oscar