Will Receiving a Federal Tax Lien Harm My Credit?
December 8th, 2007 | by admin |
Because the IRS will report a federal tax lien to credit reporting agencies, it can do serious damage to your credit. Aside from bankruptcy, federal tax liens tend to establish that you are a poor credit risk. Consider that if you don't pay the government what they believe is due, how can a company expect you to honor your debt to them? Unfortunately, once the federal tax lien is in place, it may be very difficult to pay, and will also be difficult to remove from your credit report.