They say the only two certainties in life are death and taxes. The IRS does it’s best to make sure you pay the latter. However, for a variety of reasons, many people end up owing the IRS money. Whether a person forgot to move a decimal when reporting their income, or they’ve avoided filing entirely, at some point, the IRS will come asking for money.
If you have strange items showing up on your credit report that are affecting your credit, it might be a good idea to reach out to the best credit repair companies in Texas, so they can assist in getting the inaccuracies removed.
With the full power of the United States government behind them, the IRS can be intimidating when they start asking for their share of your hard-earned money. On top of the payments, people worry if the debts will affect their credit score. In some cases, they can.
IRS Debt and Credit Reports
Prior to 2018, all sorts of unsavory items could appear on a credit report. Anything from unpaid child support to personal lawsuits resulting in judgments could appear on these documents.
In 2018, all of that changed when the credit reporting bureaus stopped reporting the vast majority of court judgments and tax liens. They may still show up in some circumstances, but generally, they will not.
An IRS debt typically falls under the tax lien category. For this reason, it typically will not be listed on one’s credit report. That being said, it has other ways of showing up, depending on how the IRS has chosen to try and collect from you.
In some cases, if the IRS is unable to reach you and if it has not had contact with you for several years, they may hire a collection agency to collect the debt. In cases like this, the collection agency will almost certainly report this to the credit bureaus, and it will be listed as a collections account on your credit report.
The collections agency might or might not list the reason for the debt, but the amount and the name of the collections agency will surely show up.
What Other Items Show Up on My Credit Report?
Any open line of credit, such as a credit card, auto loan, or mortgage will show up on a credit report. Regarding closed accounts, they will continue to show for up to seven years. It should be noted that even if you had a collections account and paid it off, the collection will still show on your credit report, though it will be listed as paid.
Both open and closed lines of credit will also show a payment history. If you’ve had any payments go more than thirty days past due, they’ll show up as a negative mark on that account. Payments more than thirty days late are a serious issue and can have drastic effects on a person’s credit score.
Lastly, items like foreclosures and surrendering your car can hurt your credit report. Once again, they will be listed on the original account for the mortgage or the car loan. It will show the account as closed and whether the item was voluntarily or involuntarily surrendered or foreclosed.
Inaccuracies Are Common
Did you know that millions of Americans have errors on their credit reports that are affecting their credit scores? For this reason, it’s always a good idea to have a look at your credit report annually.
Thankfully, if any errors are found, experienced credit repair companies like The Phenix Group can set the record straight. We have years of experience dealing with creditors, collections agencies, and credit bureaus. Let us handle the hassle, so you can focus on making sure your financial profile is the best it can be!