Tax Liens

Does a Tax Lien Affect My Credit?

As with other negative credit notices, an IRS, State, or Property Tax Lien can severely hurt your FICO Score. These items remain on your credit report for seven years after they are paid. The really bad news is that the IRS can file the tax lien in as little as 10 days after the notifying you that you owe back taxes. Law does not even require that the IRS notify you of the lien before filing.

The best advice is to avoid the tax lien in the first place: file your tax returns and pay any owed taxes within the appropriate deadlines. However if this problem has already affected you, there are ways that you can improve your credit score after a tax lien.