Why all the Tax Liens have been Removed From Credit Reports

As  from 2018, all the outstanding debt or tax liens which you owe IRS will no longer be able to appear on any our your credit reports. This scenario can affect you how your credit score will look like. Initially, these tax liens used to appear on all the credit reports which are maintained by the national credit bureaus which are Equifax, TransUnion and Experian. Even though one was able to attempt paying the lien, it continues to stay on his/her reports up to a maximum of 7 years. On the other hand, all the unpaid liens continued to appear on the reports for a maximum of 10 years.

In the year 2017, these credit reference bureaus made some changes which ensured the elimination of half of all tax lien data and civil judgement records. By 2018, all liens on tax had been removed on all credit reports which are maintained by the credit reference bureaus.

The stakeholders decided to update these rules after the received a report regarding consumer financial protection bureau study which was conducted by financial experts. These experts found out that there were so many issues which revolved around the reporting of that information correctly.

One of the credit risk assessment experts said that many of the liens and judgements were not linked to the right people. This is because one was able to share another person’s first and last name, at the same time not live in the same part of the country and they might be able to have access to the judgement or lien which might be linked to your credit report file.

According to the credit risk analysts, the tax lien can affect the credit score of many people since it’s about 11% of the consumers who will be able to see any changes which may be made to their score. Due to this action man scores of the consumers are likely to increase up to even 30 points.