| A lien is a property interest granted over a piece of | | | | If a tax lien has been placed on any of your real or |
| property to make sure that a debt or any other form | | | | personal property, it will appear in your credit report. It |
| of obligation is met. A tax lien can be stated to be a | | | | can haunt you for a long period and in case you are |
| lien placed on a property to secure payment of taxes. | | | | wondering "How long do tax lien stay on a credit |
| They are imposed when there has been a failure to | | | | report", here are the answers: Paid tax liens continue |
| pay taxes, which could be any tax like personal | | | | to appear in the credit report for seven years from |
| property tax, real property tax, income tax or any | | | | the date of paying the lien. In case, the tax lien has not |
| other delinquent tax. That is, if you have not paid your | | | | been paid, it will remain for a minimum period of fifteen |
| tax and have ignored to pay it even after demand, the | | | | years; in some cases it may remain forever. Equifax |
| tax amount along with any fines and interest will | | | | and TransUnion show unpaid tax liens indefinitely while |
| become a tax lien to the government upon any real or | | | | Experian shows it for fifteen years. |
| personal property belonging to you. This is placed on | | | | This action will affect your credit rating in a negative |
| your property to ensure that before the property is | | | | way (just like any unpaid debt will do) and in turn will |
| sold the pending taxes are paid up, either by you or by | | | | reduce your credit score. This means that your credit |
| the buyer. | | | | worthiness in the loan market is lowered and you will |
| The tax lien will become effective from the date of | | | | be perceived as a high risk debtor. Your ability to find a |
| assessment made by the IRS (Internal Revenue | | | | lender for any future loans could be seriously hindered |
| Service) which is the formal recording of the tax in the | | | | by this. Therefore, it is important to get the tax lien off |
| revenue records. Once the demand for paying the tax | | | | your credit report at the earliest. The only way you |
| is received and you do not pay within ten days from | | | | can do this is by paying the pending taxes in full and |
| the notice date, the lien is automatically activated, from | | | | ensuring that the tax agency removes the lien, by |
| the date of the assessment. The tax lien will cover not | | | | showing them the receipt for your paid taxes. You |
| only the property currently in your possession but will | | | | should also make sure that the tax settlement is |
| also apply to property to be acquired in the future. The | | | | reflected in your credit report - please note that only |
| priority or order of the claim on a property is | | | | the severity of the lien's impact on your credit rating is |
| determined by the type of creditor and the type of lien. | | | | reduced, as the lien will continue to appear for seven |
| For example, a retailer's lien on a personal property | | | | years in your credit report. |
| takes priority as compared to a vehicle lender. | | | | |