A Tax Relief Law Firm Can Improve Your Credit
When you fail to make a payment for your mortgage, credit cards, or other loans, the late payments will often be reported to one or more credit bureaus and will likely reduce your credit score. Having a lower credit score can affect your ability to be approved for credit in the future, for property rentals, or to obtain certain jobs or professional licenses.
When you fail to make a payment to the Internal Revenue Service (IRS), the agency will not immediately report the owed taxes to the credit bureaus like other types of creditors. However, if you continually ignore attempts from the IRS to obtain payment from you, you may be subject to a federal tax lien. Such a lien will likely be included on your credit report and can cause significant damage to your overall creditworthiness.
The fact that you’ve ignored a tax debt and have a levy does not mean that all is hopeless, however. There are ways an experienced tax relief lawyer can help you settle your debt with the IRS and have the levy removed from your credit report. Such methods can include:
- Paying off the full debt, which can result in removal of the lien in a month or so
- Paying off the debt in accordance with an installment agreement arranged with the IRS, at the end of which the lien will be removed
- Seeking a withdrawal of Notice of a Federal Tax Lien, which is available under certain circumstances
A skilled attorney will identify what the best plan of action is for you to repair any damage to your credit by a tax lien. The best way to minimize damage to your credit, however, is to address any debts with the IRS as soon as you are notified and before a lien is issued.
Call a Chicago IRS Settlement Attorney for Help Today
At Attorneys Tax Relief, we help clients resolve their debts with the IRS and address many other problems that may arise from the taxpaying process. If you have any questions about tax debts, liens, or other issues with the IRS, call a tax debt lawyer at 800-819-6866 to discuss your situation.