 TITLE: Why Is There an Inquiry From the IRS on My Credit Report? CONTENT: Does Tax Information Show Up on Credit Reports?\n-----------------------------------------------\nTax information—including on-time payments and back taxes—will not show up on your credit report. But ignoring a tax debt or pushing it down the road can hurt your finances.\nIf a lender finds out you have a tax lien against your property, they may not feel confident working with you. Furthermore, when you apply for a mortgage, you'll need to disclose all your debt payments, even if they don't appear on your credit report. A substantial IRS bill or big monthly payment affects your debt-to-income ratio, which plays a substantial role in lending decisions.\nThe best way to handle your taxes is head-on. Even if you can't pay your bill in full, making as large a payment as you can and setting up a payment plan for the rest will help you close out the debt with a clear timeline. On the other hand, you may choose to take out a loan to pay off the IRS so your credit score can benefit from your on-time payments.\nHowever you choose to handle it, you want to be proactive rather than letting your tax bill pile up. As you manage your bills, it's important to monitor your credit closely and address any late payments or potential fraud as quickly as possible. A great credit score can help you stay prepared for any tax-related expenses in the future. END