Q: I have a $105000 federal tax lien on my credit report that is non collectible , how can I go about getting this removed
A: It depends on why you are saying the lien is non-collectible. If it is past the statute of limitations for collection, the lien will usually have expired and it will remain on your credit report as a historical bad debt item until it ages off. If you are referring to the more likely reason, that you have had your tax debt placed into "Currently Not Collectible" status, then the lien is still a valid federal tax lien (you still owe the money) and will remain on your credit report as a debt even if the IRS has agreed not to try to collect on it at this time. If you qualify for Currently Not Collectible status, you may be eligible for an Offer in Compromise to permanently settle your tax liability. If you do apply for an Offer and it is accepted, you may be able to have the lien "withdrawn" after you meet the payment obligations. Once the withdrawal is processed by the credit bureaus, it shows up as if no tax lien had ever been filed and can allow your credit to make a full recovery.
A: If you are in currently not collectible status the lien will stay on your credit report until you pay the debt or the statute of limitations on collections has expired. If the statute of limitations has expired and the lien is still on your credit report, you can call the IRS and ask for a lien release. This can happen if you did something during the collection period to toll (stop) the statute from running. In this case, the IRS will refile the lien and in many cases the taxpayer will need to request a lien release.
If you are in currently not collectible status, I recommend you consult with a tax attorney and see if you are eligible for an Offer in Compromise. Stay away from the places you see advertised on tv.
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