Does applying for a CC notify IRS?

Anonymous · ‎11-06-2016

Ever since I began rebuilding my credit, I have encouraged friends and family to do the same. I have a close friend who apparently hasn't paid taxes in several years and is afraid applying for a credit card will alert the IRS. Now, please..before any judgement, his position began as a casualty of divorce and is something he wants to take care of, but doesn't feel that he can at the moment. My take is, since it takes several years to build credit, and if it doesn't notify the IRS, then shouldn't he establish credit asap? Does anyone know if applying for a credit card alerts the IRS?

RobertEG · ‎11-06-2016

Is the IRS currently aware of and pursuing back taxes?

If current collection procedures are underway, that is quite different than lack of awareness of tax obligation.

Does he simply have a back tax obligation that remains unpaid, or is he engaging in tax evasion?

Creditors dont routinely notify the IRS of every credit card account, but if there is an ongoing IRS investigation or collection process in effect, they may be taking steps beyond the norm to determine financial transactions........

Anonymous · ‎11-06-2016

@RobertEG wrote:
Is the IRS currently aware of and pursuing back taxes?
If current collection procedures are underway, that is quite different than lack of awareness of tax obligation.
Does he simply have a back tax obligation that remains unpaid, or is he engaging in tax evasion?

Creditors dont routinely notify the IRS of every credit card account, but if there is an ongoing IRS investigation or collection process in effect, they may be taking steps beyond the norm to determine financial transactions........

Tax evasion. Something happened to where he ended owing the IRS a few thousand dollars (which is a lot for him) and he became so discouraged that he just never filed again. In fact, he didn't file then either because he couldn't afford the HnR Block fee. I guess he normally got a refund. And..I don't get it because I know he has had a few jobs since then and has even claimed unemployment.

RobertEG · ‎11-06-2016

If they are aware both of delinquent tax obligation and also see possible evasion, there is no telling what exceptional means thay may inititate to investigate the situation.

I would not make any assumptions based on what they normally may or may not do, or offer any opinions as to how he should continue to avoid IRS scrutiny.