Tax liens on your credit report can have negative implications on your life. It could prevent you from getting a loan or even landing a job. This is the reason why people who have them on their records try hard to get rid of them. To do that, there are two ways: release or withdrawal. As any tax lawyer will tell, the latter is a much better option.
Released vs. Withdrawn
When the IRS releases a lien, the taxpayer will have 2 public records – one that shows the lien was filed and another which indicates that it was released. That means that creditors, potential lenders and employers can still see it in your record for at least 7 years. Compared to released liens, withdrawn liens receive special treatment because it would appear that the lien was never filed in the first place. The credit reporting agencies will drop any reference of the lien on your credit history.
How to Get Liens Withdrawn
The first step to getting the lien withdrawn is by paying your liability. You have several options for debt relief. A tax lawyer may be able to help you with those options. Once paid, you can follow up with the IRS to get the lien withdrawn. The IRS may also withdraw the lien if it was filed prematurely or if it was not in accordance with their administrative procedures.