Tax Lien Policies Eased By IRS

The stringent tax lien policies by the IRS have ruined the credit scores of many American consumers who have found it difficult to pay of the debts owed to the government revenue agency. Taxpayers, owing more than $5000 and unable to pay it have been at the receiving end of the agency’s notices. Tax lien notices are counted as one of the most serious offences and if such an item appears on your report, your score takes a nosedive, at times by more than 200 points.

As per the new notification and easing up of the policy, the limit has been increased to $15000. It is expected that this limit will be reviewed after a year. So, consumers can now breathe easily as only debts more than $10000 will appear in credit report.

Another good news for consumers and taxpayers is that prior to the policy change, tax lien remained on the credit report for a period of seven years. But now, the lien will be completely withdrawn if the debt is paid in full. The policy is being implemented and the procedure streamlined.

It will be some time before the liens can be withdrawn but it will soon be implemented. The withdrawal is also applicable if the taxpayer has agreed to pay the debt in installments. The agreement, known as Direct Debit Installment Agreement is valid for withdrawal of liens for debts up to $25,000. The installment will be debited from your account every month.

So, if you are one of those taxpayers with a tax lien on your report, then you must take advantage of the new guidelines and contact the IRS to enter into an agreement with them. You can now protect your credit score and report from being further damaged.