If you pay your taxes late and you have to pay the penalty, will it show up on your credit reports?
2007-03-26 06:04:04 · 2 answers · asked by Test 1 in Business & Finance ➔ Taxes ➔ United States
No, not under normal circumstances. The IRS is required by law to keep your confidential tax information private. Just being late and paying a penalty should not lead to anything on your credit. If, however, your case goes to the Collection Department of IRS (usually after 4-5 letters from the regional service center), then a Federal Tax Lien (FTL) can be filed. A FTL is a public record and does appear on your credit and is very negative to your credit score. If you owe less than $25K and set up a payment plan before the FTL is filed that will result in full payment within 36-48 months, nothing should show up under your credit bureau with IRS.
If state tax is involved, it depends on your state.
2007-03-26 06:15:31 · answer #1 · answered by exirsman 5 · 1⤊ 0⤋
No it does not.
2007-03-26 09:17:46 · answer #2 · answered by Ola 4 · 2⤊ 0⤋