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Public Record Searches for Federal Tax Liens

Funding with Confidence

Public Record Searches for Federal Tax Liens

 

Often Incomplete, Outdated or Non-Existent

 

If you’re using public records to search for federal tax liens, you may be missing hidden tax debts. Compare the insight you’ll get from a Legacy Tax Risk Mitigation versus a simple public records search for a tax lien:

 

Tax Liens Removed From Credit Reports

Tax liens used to appear on your credit reports maintained by the three national credit bureaus (Experian, TransUnion, and Equifax). Even if you paid the lien, it stayed on your reports for up to seven years, while unpaid liens remained on your reports for up to 10 years.

In 2017, however, all three credit bureaus implemented changes to eliminate civil judgment records (notes that a consumer owes a debt to a court because of a lawsuit result) and half of all tax lien data. By April 2018, the bureaus removed all tax liens from credit reports.

 

The IRS Does Not File All Tax Liens, NOR WILL THEY TYPICALLY UPDATE OUTDATED INFORMATION

 

The IRS uses the filing of a tax lien to notify the public that the taxpayer owes a tax debt. They make minimal effort to make sure the amount of the tax debt is current. They will often allow a tax lien to expire without renewing it. Long Story Short: IRS Tax Liens are not a reliable source of information on the tax debts of your borrowers.

 

Services Provided

Public Records Search

Federal Tax Liens

X

*

Unpaid IRS Debt Without a Lien

X

 

Unfiled Tax Returns

X

 

Lender Tax Risk Mitigation Score

X

 

Real-Time Problem Alerts

X

 

Tax Problem Resolution Services

X

 

Tax Deposit Report

X

 

Tax Returns & Wage/Income Transcripts

X

 

Federal Filing Requirements

X

 

Identity Check

X

 

Payment Plan Verification

X

 

*Starting in 2018, the three major credit bureaus removed tax liens from consumer credit reports. However, lenders may still search public records for tax liens. The IRS may file a tax lien if the taxpayer has an outstanding tax bill. Note the IRS only files a tax lien approximately 80% of the time there is a tax debt and only if the tax debt reached a specific amount.   A tax lien is typically filed in the suspected county of residence for the taxpayer at the time the lien is filed. 

 

 

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