guest says:

An IRS tax lien typically expires after ten years. The problem with this is that there are two types of IRS liens. The more common type is called a “self-releasing” lien. If you are able to obtain a copy of the lien itself, you want to check to see if it says something along the lines of “this lien expires on SOME DATE unless refiled”. If it says that, you have a self-releasing lien. The problem with this is that the credit bureaus do not seem to understand the concept of the self-releasing lien. They simply watch the public records to see if the IRS has reported the lien as being released, and if the IRS has not done so they assume the lien is still in force. A lender will typically want a tax lien released or subordinated to the new lender if you are trying to refinance the home. You can contact the the IRS Lien Unit at 1-800-913-6050 and ask them if they show any liens on file. If they say no, tell them that there is an old tax lien that is still showing up on your credit report and they should be able to fax you a formal Release of Lien and also mail one to your County Clerk and Recorder. If the lien is actually still in force (which is unlikely, given that the IRS Statute of Limitations to collect a debt is 10 years) then you will need to get a Certificate of Subordination before you can close on the loan.