If you have a tax lien being reported on your report you score is in serious trouble. You should remove this item as soon as possible.
The first step is to have the lien validated; you must do this directly with the bureau. Simply send them a letter and ask them to validate the debt.
It is not uncommon for wrong information to be reported on your report. This is because mistakes do happen and it is as easy as dialing a wrong phone number.
When your letter is received then the bureau will contact the state or federal government and ask them to verify the debt. If it is verified then you will have to negotiate payment to remove it.
It may be in your best interest to talk with a tax negotiator to work out a settlement with the government. You can often pay a reduced amount, and once paid you can remove it from your report.
A tax lien can be collected upon for 10 years, and will stay on your report for 7 years once it is paid. If not paid then you can be reporting a tax lien on your report for a considerable amount of time.
However once you pay in full, wait three months and dispute the mark again. It has been learned that frequently the government will ignore future validation requests from the bureaus once a lien is paid.
This means that the negative mark will be removed from your report if it is not verified. However if this mark is a mistake and not your debt you should demand immediate proof and send any documentation to show this.
Repayment
The state and federal government are willing to negotiate and settle on a reduced payment. It is called an OIC (offer in compromise), this just means that the government is accepting partial payment.
When the government decides to accept your OIC or not they will look at your; ability to repay, your assets, and your income. It can help your cause if you send a letter pleading financial hardship.
It may be in your interest to hire a tax negotiator to help with this. However you do not have to just live with this mark on your report.
In sum, you can remove a tax lien and should. You don't just have to wait seven years for this mark to fall off naturally.
