If you Don’t File Back Taxes Can It Affect Your Credit Score?
- July 27, 2019
- Posted by: asal
- Category: Tax Resolution
If you have back-tax issues, it could indirectly hurt your credit score. Find out how in our latest blog. Financial situations can become difficult for many taxpayers if they don’t file back taxes. If you don’t file back taxes, and don’t pay your debt on time, you can owe the IRS big bucks. In a way, if you don’t file back taxes it’s similar to not paying credit card debt. Owing the IRS can be scary, especially if you don’t have the money to pay your back taxes. However, taxpayers shouldn’t fear because there’s help.
Read on to learn how you may affect your credit score if you don’t file back taxes. If you owe back taxes, and can’t afford to pay them back, contact Platinum Tax Defenders. The team at Platinum Tax Defenders has successfully reduced tax debt for clients from over $140,000 to just $100. If you owe the IRS more than $10,000 in back taxes, contact Platinum Tax Defenders today.
Will I Affect My Credit Report If I Don’t File Back Taxes?
If you don’t file back taxes, it can appear on your credit report sometimes. However, the IRS doesn’t report your unpaid back taxes immediately to credit reporting agencies. If you owe more than $10,000 and aren’t paying, the IRS will file a Notice of Federal Lien on you. This IRS notice appears on your credit report as a “seriously negative” item. If you receive a lien notice from the IRS, don’t worry, Platinum Tax Defenders offers tax lien help.
How Can I Get Tax Lien Help From Platinum Tax Defenders?
If you receive a Notice of Federal Lien from the IRS, you don’t need to panic. There are small steps you can take to resolve your back-tax situation. For example, start repaying your debt. Your tax lien can remain on your credit report for up to seven or 10 years, depending on your state. If you don’t know what to do, call Platinum Tax Defenders. We offer tax lien help. Attempting to pay back your taxes will help when the IRS places a lien on your account. There are ways you can try to pay back taxes if you can’t afford to pay all at once. A tax resolution professional can help determine for which tax relief program you may qualify. Read on for a list of tax resolution programs that can provide tax lien help.
Get Tax Lien Help with Installment Agreements
One of the easiest ways to pay get tax lien help is to pay back taxes in full. However, not everyone can afford to pay back taxes in full. For that reason, the IRS created the Installment Agreement program. You can negotiate a monthly agreement with the IRS to pay back taxes. However, it’s beneficial to work with a tax resolution professional on cases such as these. When negotiating a monthly payment amount, you must propose a realistic number. A tax relief specialist can help you determine that number. Once you enlist in an Installment Agreement program, the IRS will provide tax lien help to remove the lien.
Get Tax Lien Help with Offer in Compromise
In an Offer in Compromise deal, you agree to pay your back taxes in full to the IRS. However, the IRS agrees to allow you to pay back less than you owe. For example, Platinum Tax Defenders was recently successful in getting their client’s back taxes reduced from over $140,000 to just $100. It’s also beneficial to work with a tax resolution specialist when attempting to apply for an Offer in Compromise. A tax relief professional will know what information you need to provide to qualify for an Offer in Compromise. Once you reach an Offer in Compromise agreement, the IRS will provide tax lien help to remove the lien.
If I Don’t File Back Taxes, Will It Hurt My Financial Life?
There are ways that you can face serious financial consequences if you don’t file back taxes. Some of these issues may indirectly harm your credit score.
If You Don’t File Back Taxes, You Will Owe More
If you don’t file back taxes on time, the IRS will charge you penalties plus interest. Paying more in back taxes could lead to making it challenging to pay other bills. If you fall behind on credit card bills, your late tax payment can indirectly impact your credit score. According to Experian, payment history is the most critical factor in your credit score. Your payment history counts for approximately 35 percent of your credit score. Therefore, late payments reported by your creditors can hurt your credit score.
If You Don’t File Back Taxes, It Can Be Difficult To Apply for A Loan
While your credit reports no longer show tax liens, they can still cause problems when applying for a loan. When you apply for a mortgage, your potential lender can perform a public records search. This public records research will inform them of any outstanding judgments or tax liens filed against you. You should file back taxes before applying for a mortgage. If you can’t afford to pay back taxes, try setting up a payment plan with the IRS. Having a payment plan in place may be enough to satisfy some potential lenders. Also, a payment plan can provide you with tax lien help. However, if you set up a payment plan, your lender will add that monthly payment to your debt-to-income calculations. Therefore, the lien payments toward back taxes could ultimately reduce the amount of the home loan for which you may qualify.
If You Don’t File Back Taxes, Don’t Ignore The IRS
If you don’t file back taxes, you should not ignore the problem. As penalties and interest continue to climb, your situation will become worse if you don’t file back taxes. Instead, consider hiring a tax resolution professional to help you come up with a tax relief plan. If you have good credit, you could qualify for a personal loan to cover your back taxes. It’s possible that the interest rate on the loan may be lower than what the IRS charges. Even if unpaid taxes don’t directly hurt your credit score, they can make your life more stressful. Tackling your tax issues head first, with a trusted tax resolution expert, is the best way to preserve your credit score.
Worried about How Taxes Can Affect Your Credit Score? Contact Platinum Tax Defenders for tax help today
Your back-tax issues may cause you trouble with the IRS. But don’t worry, Platinum Tax Defenders can help. For anyone owing the IRS more than $10,000 in back taxes,
it’s highly advisable to seek the advice of a tax professional. The experts at
Platinum Tax Defenders can help you with your back-tax issues. Platinum Tax
Defenders can provide you with tax lien help if you get into back tax trouble.
Call the experts at Platinum Tax Defenders today for a free consultation.