Individuals who have trouble meeting their tax obligations may soon receive some credit score help as a result of new rules put forward by the Internal Revenue Service.
The tax agency places liens on consumers' possessions, such as a home or a car, in an effort to recoup taxes they have yet to pay. These liens appear on individuals' credit reports for up to seven years, and may inhibit them for securing reasonable insurance, credit card and mortgage rates down the road.
However, under the new regulations, the IRS has raised its minimum lien requirements from $5,000 to $10,000, meaning you may not need credit repair unless your tax debt eclipses the latter amount, CBS MoneyWatch reports.
Consumers who pay off their tax balances may be able to have the liens removed from their credit reports, the report said. But the IRS won't strike the lien from your credit history unless you request it, which can be a lengthy process.
At this point, you may benefit from working with a credit lawyer to help investigate and dispute a lien that is unfairly lingering on your credit report. By contacting a credit attorney, you may be able to remove the questionable item and repair bad credit in order to improve your financial standing.