 TITLE: Why Is There an Inquiry From the IRS on My Credit Report? CONTENT: Can Owing the IRS Hurt Your Credit?\n-----------------------------------\nOutstanding taxes do not appear on your credit report, so if you owe the IRS, you can breathe easy as far as your credit is concerned. But while your overdue taxes won't hurt your credit score, the IRS charges interest and penalties on back taxes, and these costs can snowball quickly.\nTax liens are not included on credit reports, either. In 2017, Experian, TransUnion and Equifax decided to eliminate them from consumer files. As of April 2018, tax liens no longer showed up on any reports and the policy remains in place today.\nHowever, a tax lien can still negatively impact your borrowing opportunities. If a lender searches public records as part of their loan application process, they may find out that you have a tax lien and deny your application because of it.\nIf you're behind on your taxes, you can set up an installment agreement with the IRS to bring your account current. The payments you make under that agreement will not be reported to the credit bureaus, but they will help you clear your debt over time. These installment plans do, however, accrue interest and fees, and you'll have to pay a setup fee to establish the plan.\nYou can also pay tax bills using a credit card or personal loan. If you make your monthly payments on those accounts on time, your payment history can boost your score. Keep in mind, though, that your credit utilization also affects your score, so charging a large tax debt to a credit card or taking out a substantial loan may pull that number down. You may also end up paying much more in interest, especially if you put the bill on a credit card. END