The Impact of Not Paying Taxes on Your Credit Score
Friday, 12 April 2024, 16:30
The Impact of Not Paying Taxes on Credit Score
Not paying your taxes could lead to garnishment of wages by the IRS, indirectly affecting your credit score.
Consequences of Ignoring Tax Debt
- Interest and penalties: The IRS assesses interest and penalties on unpaid taxes.
- Wage garnishment: Failure to pay taxes may result in the IRS garnishing your wages.
- Credit score impact: Falling behind on payments due to wage garnishment can lower your credit score.
Ignoring tax debt can have far-reaching consequences, including potential credit score damage. It's crucial to address tax obligations promptly to avoid negative impacts on your financial health.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.