Can Unpaid Taxes Affect My Credit Score?
Your credit score is based off accounts that you have commit to paying. How frequently you do this, whether the agreed upon amount is paid for on time, and if the account is paid in full all affects your credit score. This applies to car notes, mortgage loans, student loans, private loans, and credit cards. Any time you officially borrow money from a bank or company that requires your social security number, it gets reported to the credit bureau.
About the Credit Bureau
There are three major credit bureaus that businesses refer to: Experian, TransUnion, and Equifax. Sometimes, businesses pull one or all three reports because oftentimes, businesses will only report to one or two of these credit bureaus. For the most part, you should expect all of your accounts to be on all three. Each of them is just as important as the other. There’s not one report that’s preferred over the other. But it’s worth noting that none of them report any taxes owed to the Internal Revenue Service (IRS).
How Delinquent IRS Payments Indirectly Affect Your Credit Score
While money owed to the IRS doesn’t directly affect your credit score, the priority of it will indirectly make an impact on how you manage other credit accounts. For instance, if you’re having trouble paying some of the credit account you have, and you’re also under pressure to pay the IRS, then that’s going to take priority over everything else. It has to. The consequences of neglecting to pay the IRS are too much of a risk. Not paying your taxes could result in your paycheck getting garnished, or having a lien on your possessions. Even worse, you could serve prison time.
So when the IRS claims that you owe them money, it’s your responsibility to make sure that these claims are legit and if they are, pay it.
The problem that most taxpayers tend to run into is that they cannot always afford to pay what they owe to the IRS. This problem is more common than you might think.
That’s why Success Tax Relief, a tax relief firm based in LaPorte, Texas, just 30 minutes from Houston, offers services that alleviate the stress of needing to pay a hefty tax bill in one single payment. Success Tax Relief can communicate with the IRS on your behalf and negotiate an affordable payment plan for you. One thing you need to remember is once you’ve agreed upon a payment plan with the IRS, you MUST keep to it. If you don’t, then the IRS will assume that you’ve forfeited the agreement and the full amount, along with late fees and penalties will be due immediately.
If you are in a situation where you owe the IRS an amount that you cannot pay, contact Success Tax Relief and let us help you arrange an affordable monthly payment that will allow you to still manage other payment responsibilities keeping your credit score looking good. Contact us today for a free consultation at 877-825-1179 or reach us online.