How to Get Rid of Old Incorrect IRS Information on a Credit Report

If an individual owes taxes to the Internal Revenue Service that are not promptly paid, a record of the unpaid tax debt will appear in his credit report as a derogatory entry. Because the IRS must keep track of the taxes owed by every taxpayer in America, mistakes do sometimes occur. The Fair Credit Reporting Act gives you the right to a fair and accurate credit report. Although a legitimate tax lien will continue to report on your credit file for seven years after it is paid, a tax debt that does not belong to you can and should be addressed for you to restore your good credit rating.

Instructions

1

Obtain a copy of your credit report from any one of the three major credit bureaus: Equifax, Experian or TransUnion.

2

Telephone the IRS Customer Service department at (800) 829-1040. Request to speak with an IRS agent concerning the inaccurate tax debt. Write down the name of the agent assigned to help you.

3

Explain to the agent that you recently discovered an inaccurate tax debt on your credit report and that this derogatory entry has lowered your credit score and may result in you being turned down for credit or loans. Give the agent the document number listed in the tax debt entry.

4

Allow the agent to investigate your claim and call you back. In some cases, the incorrect IRS information is an obvious oversight or computer glitch and can be immediately removed. It is likely, however, that the agent will ask you to submit additional documentation. If so, request the direct address of the IRS office where the agent assisting you works.

5

Send a copy of your birth certificate, picture ID, Social Security card, credit report and tax return for the year of the supposed tax debt to the agent's office along with a short statement that reiterates your concerns about the incorrect information on your credit report.

6

Wait at least 10 to 15 days to give the agent a chance to investigate your claim and remove the item. In most cases, the IRS will call you to inform you that your information has been reviewed and which actions it has decided to take.

7

Pull your credit report again after 30 days to verify that the incorrect tax debt has, in fact, been removed.

8

Send a letter of dispute to all three credit bureaus if the IRS refuses to correct the information. To increase your chances of a successful dispute, include any documentation you have that proves the disputed item is incorrect.

9

Give the credit bureaus a maximum of 30 days from the time your dispute was received to investigate your claims. After 30 days, the credit bureaus are required to send you written notification of any actions that have been taken and a new copy of your credit record if your score has changed as a result of those actions.