THD Credit Consulting

How a Tax lien affects your credit

Erik Kaplan

Erik Kaplan

Erik is the CEO and Founder of THD Credit Consulting

TaxLienWe all know that when you fail to pay your credit card bills or loans on time, your credit rating can suffer as a result. Did you know that not paying your income taxes can result in a tax lienand have the same affect on your credit score?

What is a tax lien

The federal government takes it very seriously if you fail to pay your taxes. And it can be serious for your credit reports and credit scores, too. A federal tax lien is the U.S. government’s legal claim against your property when you fail to pay a tax debt.

How does it affect your credit?

Once you fail or neglect to pay a tax liability on time, the IRS files a public document, a notice of federal tax lien, alerting creditors that the government has a legal right to your property – and it is one of the worst things that can appear on your credit report!

A tax lien, which may occur at the state, local or federal level, significantly impacts your credit score, affecting your ability to get loans, credit cards and even a cell phone.

How much or how little your credit score will be affected by a tax lien depends on a variety of factors, including other items listed on your credit report and your credit behavior. Even when a tax lien is paid and released, your credit scores will likely continue to be negatively impacted by the lien for many years as long as it’s on your credit files.

Is there any way to remove a lien from my credit file?

There are some instances in which you may be able to have a lien notice withdrawn from your credit file.  To discuss what steps you can take, give me a call (800) 822-7120 or email me at

Looking for tax debt relief?

Guidance Tax Services is a tax relief advocate group that strives to protect you from the devastating effects of looming tax debt.  Give them a call at 800-381-8816 and ask for Rick Yeager and tell him I sent you! 

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THD Credit Consulting ・(800) 822-7120 ・

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