Will the IRS “REMOVE” a tax lien from your credit report?

Yes – When paid in full or you owe less than $25,000 and you are in an IRS Fresh Start payment plan being paid by direct debit, you can submit an IRS Form 12227 to have the lien withdrawn from your credit report. As opposed to hanging around on your credit file for seven years or more as a paid tax lien and aging off your credit report. So what is the difference between “Released and Withdrawn?”

Released tax liens will show as a debt that was satisfied and therefore will still have a negative impact on your credit.  A withdrawn status means it will be completely removed from the records, as if it never existed and you never owed the debt. This should be recorded to all three consumer credit bureaus as well as their business departments if you are a business owner. Oh, don’t forget about D & B and Pay net as well.


Watch this video by the IRS on how to get it removed before you pay it off with a Lien Notice Withdrawal.