Starting in 2018, tax liens are no longer listed on credit reports. This is due to a decision and agreement on behalf of the credit reporting bureaus. The bureaus made this decision because so many liens were being misreported, causing credit report errors and extensive need for credit repair.

What is a tax lien and what does it mean?

Tax liens are effectively claims on your property—your house, expensive personal items and other valuable financial assets—made by the government. If you can’t pay the taxes you owe, the IRS applies a lien to your property to ensure that you satisfy your tax obligations. Lien notices make people panic, but they’re not the same as seizure notices.

When does the IRS release a tax lien?

After you pay your tax debt, the IRS has 30 calendar days to release your lien. Occasionally, paperwork gets overlooked and liens aren’t released on schedule—so keep an eye on your lien status to make sure things go to plan. What if the IRS Doesn’t Release the Lien?

How much money can you make with a tax lien?

According to Investopedia, there was about $14 billion in unpaid property taxes in 2017. Tax lien certificates are issued by local governments and can ultimately be auctioned off to investors. By selling tax liens, the city can immediately earn back money lost in taxes.

What to do if you have a federal tax lien?

If the IRS doesn’t release your lien, call the Lien Desk on 1-800-913-6050 right away. Alternatively, you can fax a letter to 1-855-390-3530. Make sure you have your payment documentation on hand and ask to speak to a rep about lien release. You can seek help from a tax attorney if you run into trouble.

What’s the difference between a tax lien and a levy?

A levy, on the other hand, is the forced collection of taxes due. Tax liens are public record, on file with your local court, and appear in the public records section of your credit report. They’re considered to be one of the most negative credit report entries and can damage your credit score similar to bankruptcy or foreclosure.