The length of time that a tax lien may stay on your credit report depends on the payment status of the lien. Paid (or satisfied) tax liens may not be reported more than 7 years after the date of payment. 15 U.S.C. 1681c(a)(3). Tax liens that are un-paid may be reported for more than 7 years after the tax was first due.
The Federal Trade Commission (FTC) has taken the position that tax liens may be reported so long as they remain filed and effective. FTC Official Staff Commentary §605(a)(3) Item 1.
Incorrect tax liens can be difficult to remove from your credit report. However, it can be done. Under the Fair Credit Reporting Act (FCRA), a credit reporting agency (Equifax, Experian or Trans Union) may be liable when it reports liens as released instead of deleting them after the consumer established that the liens were released because the taxes were never owed. Yourke v. Experian Info. Solutions, 2007 WL 1795705 (N.D. Cal. June 20, 2007)(CRA should be held liable for inaccurate information when it reported liens as released instead of deleting them after the consumer established that the liens were released because he never owed the taxes).
Have you requested your free credit report from Equifax, Experian and Trans Union? Have you discovered an incorrect tax lien on your credit report because you never owed the taxes? Have you disputed the tax lien error to the credit bureaus? For more frequently asked questions about credit reports click HERE, or contact consumer credit attorney Micah Adkins 24/7 for a free consultation at 1-800-263-9091.