Tax liens can be a serious long-term pain in your credit report, especially since they will be there for at least seven years.
The Internal Revenue Service, however, offers an option to those hit by tax liens: pay or satisfy the debt and you can request that the lien be pulled off your record.
Do note that paying off your tax debts does NOT automatically erase your delinquent payments from your history. You also need to stick on this very hard; handing in lots of paperwork and following up with multiple phone calls. It may also take around 90 days or more for the whole program to be wrapped up and you may end up disputing things with the credit bureaus.
The funny thing is that there is no stream-lined process to go through the whole thing.
The IRS provides more details on its website, particularly THIS PAGE discussing adjustments on IRS lien policies, but be prepared to be more hands-on with this matter.
Don’t expect any consistent, step-by-step tutorial on how to do this. You’ve just got to go in hard and press for your case to push through – even if it means getting through to IRS agents who don’t want to do more paperwork.