A debt to the IRS can create enormous problems. If the IRS files a Notice of Federal Tax Lien, your credit scores will tumble. And you’ll likely find out that the IRS has a wider variety of collection tools at its disposal than most other creditors. So what happens if you come into some money,… Read More
Hopefully this won’t come as breaking news, but it’s that time of year again. You know, the one that evokes one of life’s two certainties (Hint: it’s the one that happens once a year). Whether you’ve already filed your taxes, are racing to meet the April 18 deadline, or even anticipating a refund or dealing… Read More
In 1789, Ben Franklin coined the famous line, “In this world nothing can be said to be certain, except death and taxes.” And while many would argue that Mr. Franklin’s quote still holds true today, the impact of a tax lien on credit scores has just become less certain given the recently announced IRS rules…. Read More
The only thing that is not an option is not paying your taxes at all. Tax liens are easily the meanest credit report record you can have. The lien record will remain on your credit report indefinitely if left unpaid, the only negative record that doesn’t have an expiration. And even if you do pay it, the record will stay on for another 7 years from the payment date.
The collection industry has been under attack lately. ABC’s 20/20 ran a investigative piece on Friday about the seedy world of collections. The upcoming documentary, Maxed Out, has posted a shocking clip showing collectors talking about accessing data and calling customers. And this month, the collection industry is also getting some negative attention from a report by the national taxpayer advocate to Congress.
Sometimes your past can come back to haunt you. This is especially true when it comes to credit reports and credit scores. Negative records such as late payments, collection records and bankruptcy filings stay on your credit report for 7-10 years under FCRA law. This means that a few years of irresponsible behavior in college can lead to higher interest rates on your mortgage five years later. Luckily, these records do eventually expire from your credit reports and leave you with a clean slate. Here is a breakdown of the expiration dates for credit report records.