Taxes do not affect credit scores. Neither do paid or unpaid tax liens, which can be filed by taxing entities if you don't pay them. Public records, including tax liens, were removed from credit reports and, therefore, can't directly impact your credit scores.
In the past, if you didn't pay your taxes, a tax lien could be added to your credit report. Tax liens that went unpaid remained on your credit report for up to 10 years and, even if you paid the tax lien, it remained on your credit reports for up to seven years from the filing date of the lien.
In April 2018, all three national credit bureaus implemented changes to remove tax liens from credit reports. Because tax liens are no longer listed on credit reports, they cannot directly influence your credit scores.
However, not paying your taxes on time can lead to the IRS adding penalties and interest to the amount you owe. This extra debt may make it difficult to remain current on other accounts or cause you to charge more on credit cards, which in turn can impact your credit rating.
If you find you owe the IRS and are unable to pay in full right away, your best bet is to contact them as soon as possible to make payment arrangements.
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Scoped on: 3/14/2019
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