Tax Lien Can Negatively Affect Credit Score and Remain on Credit History for Seven Years, However The IRS Fresh Start Program Aims to Change That If Taxpayers Take Action

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Sherri Gastelum of Platinum Tax Defenders explains the new guidelines and how it will help taxpayers suffering from negatively impacted credit history due to tax liens. According to a survey in March, nearly one-third of all taxpayers mistakenly believe that what affects their credit reports and scores is the timeliness of tax payments.

the IRS typically does not report delinquencies, unless they remain unpaid and result in a tax lien.

New IRS Program to help eliminate tax liens off of your credit report

Platinum Tax Defenders advice taxpayers to sit with professional tax resolution firms to get a good understanding of their options. But taxpayers should use this time wisely and interview these professionals before entering any contracts with them.

Platinum Tax Defenders points out that the IRS is exceptionally protective of a taxpayer's personal information. Therefore, the IRS typically does not report delinquencies, and payment plans placed on the taxpayer for non-payment to the credit bureaus, also qualifying and using the Offer In Compromise does not have a negative impact on taxpayers credit report. However, unsettled back taxes will lead to tax liens, which will ultimately be reported to the credit bureaus and utilized to assemble credit reports and scores.

On average 57 Million people in the United States owe back taxes to the IRS, this statistic persists despite the many services that are available to taxpayers to file their taxes by the due date such as the commonly used e-file option “free file”. Prior to the IRS Fresh Start program announced in early 2011, IRS tax liens use to remain on taxpayers credit reports for seven years from the date they were paid or satisfied. The agency now officially withdraws tax liens reported to credit bureaus if, and only if, the taxpayer pays back tax debts in full or starts an installment tax repayment program that will eventually result in full payment of all back taxes owed. Tax experts at Platinum Tax Defenders say that many taxpayers do not know or seem to forget that this is not something that happens automatically, taxpayers must ask the IRS for the withdrawal of the tax lien from their credit report.

Resolving such tax matters are never easy especially when having to do with tax liens, and bank levies that get reported to credit bureaus and damaged credit history. Professionals tax experts such as Platinum Tax Defenders serve both as a representative on taxpayers behalf in dealing with the IRS and negotiating a payment plan and removing tax liens reported to credit bureaus. Resolving and settling back taxes and removing tax liens from credit reports is essential to tax payers in their efforts to start a healthy financial life and resolving issues that add stress to their lives. Doing so requires taking certain steps that are crucial in releasing liens and levies, but unfortunately there are no black and white and one size fits all solutions.

Sherri Gastelum, president of Platinum Tax Defenders, who has been recognized by Worldwide Who’s Who for showing dedication, and leadership in professional tax services, also a board member of The Entrepreneurship Institute, and president of the Simi Valley Chapter of the National Association of Professional Women for 2012. Ms. Gastelum says that many tax resolution firms offer free consultations; her advice to taxpayers is to sit with at least two professional tax resolution firms to get a good understanding of their options. She reminds taxpayers to use this time wisely and interview these professionals before entering any contracts with them. It is curtail to stay away from firms that make promises on the amounts of money they can save the taxpayer.

Mistakes and problems do happen which leads to delinquent tax returns. Filing late, or not at all or filling inconsistently are just a few of the many ways that taxpayers end up owing the IRS and having tax liens placed on their credit. There is evident effort by the IRS to reduce the large amount of individuals that owe back taxes and that are seeking tax relief, the IRS like any creditor wants to be paid. Therefore the agency has put in place programs like the Fresh Start and Offer In Compromise to collect the money owed to them and help taxpayers resolve their back tax issues. It is essential for taxpayers to know their options and understand the steps they need to take in order to find relief.

Relief is possible with help from experts who have the experience to release IRS liens, and reduce penalties through negotiations with the IRS. Platinum Tax Defenders works side by side with their clients, educating and providing a dynamic service with a team of professionals from a wide range of accounting, legal and IRS background. The team at Platinum Tax Defenders has the skills to negotiate on a clients behalf, and had he knowledge and experience to take full advantage of programs like the Fresh Start, Offer in Compromise, Payment Plans, Tax Collection Appeals, Penalty Abatement and other various Tax Relief options available from the IRS.

To get more information about tax relief options call (800)-991-3242 for a free consultation or request more information at Platinum Tax Defenders.

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