Tax Levies

[Anonymous]

If someone were to receive an IRS tax levy on a bank account, or a wage garnishment, would that show up on credit reports? Or is just tax liens that show up on credit reports? And do they show up immediately?

Thanks

[DI]

A judgment will show up.

[Underh20]

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@Anonymous wrote:
If someone were to receive an IRS tax levy on a bank account, or a wage garnishment, would that show up on credit reports? Or is just tax liens that show up on credit reports? And do they show up immediately?

Thanks

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Only the tax lien and / or a judgment would show up.  A levy does not.

[Anonymous]

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@Underh20 wrote:

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@Anonymous wrote:
If someone were to receive an IRS tax levy on a bank account, or a wage garnishment, would that show up on credit reports? Or is just tax liens that show up on credit reports? And do they show up immediately?

Thanks

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Only the tax lien and / or a judgment would show up.  A levy does not.

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so a judgment must precede a levy, correct?  Is there a place to search, besides your credit reports, whether you have a judgement against you?  For example, with liens the county where you live will often have a website where you can search for property records and liens.

one other question: how much would a satisfied tax lien affect your credit score?

Message Edited by urgent_help_needed on 08-27-2009 11:56 AM

[Underh20]

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@Anonymous wrote:

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@Underh20 wrote:

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@Anonymous wrote:
If someone were to receive an IRS tax levy on a bank account, or a wage garnishment, would that show up on credit reports? Or is just tax liens that show up on credit reports? And do they show up immediately?

Thanks

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Only the tax lien and / or a judgment would show up.  A levy does not.

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so a judgment must precede a levy, correct?  Is there a place to search, besides your credit reports, whether you have a judgement against you?  For example, with liens the county where you live will often have a website where you can search for property records and liens.

one other question: how much would a satisfied tax lien affect your credit score?

Message Edited by urgent_help_needed on 08-27-2009 11:56 AM

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I am not sure how much a satisfied tax lien will affect your credit score.  I guess it would be the same as a tax lien in general.  However, on manual review it is better than one which is not satisfied.

Sometimes liens are judgments.  It depends on your state.  To see if you have a judgment you should check with your county court clerk's office. 

[Anonymous]

A tax lien is a public record like a judgement, but it is not a judgement and the taxing authorities do not need a judgement to lien or levy. If you owe taxes and don't pay them they can lien or levy based on a notice only. (Notice of Intent to Levy) The lien is the same as any other PR item - paid is better than unpaid. Better to negotiate its removal while in the process of paying - and they do not have to agree to do the removal.

Who do you think is going to levy?

[fused]

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creditwherecreditisdue wrote:

A tax lien is a public record like a judgement, but it is not a judgement and the taxing authorities do not need a judgement to lien or levy. If you owe taxes and don't pay them they can lien or levy based on a notice only. (Notice of Intent to Levy) The lien is the same as any other PR item - paid is better than unpaid. Better to negotiate its removal while in the process of paying - and they do not have to agree to do the removal.

Who do you think is going to levy?

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Actually, from a purely FICO scoring standpoint, paid is not necessarily better than unpaid. However, I suppose it would "look" better to potential new creditors if it is reporting as paid.

[Underh20]

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@Anonymous wrote:

A tax lien is a public record like a judgement, but it is not a judgement and the taxing authorities do not need a judgement to lien or levy. If you owe taxes and don't pay them they can lien or levy based on a notice only. (Notice of Intent to Levy) The lien is the same as any other PR item - paid is better than unpaid. Better to negotiate its removal while in the process of paying - and they do not have to agree to do the removal.

Who do you think is going to levy?

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In most states a tax lien is, by default, a judgment that is entered on the court clerk's judgment rolls.  Also, in many states, a tax lien must be entered as a judgment before certain enforcement actions can be taken. 

A tax lien that has been paid will not increase your FICO over the damage that was already done by having the lien appear on your credit report in the first place.  Upon a manual review, it does look better and may mean the difference between a creditor deciding to reverse their initial decision to decline your application or not.

[Anonymous]

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@fused wrote:

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@Anonymous wrote:

A tax lien is a public record like a judgement, but it is not a judgement and the taxing authorities do not need a judgement to lien or levy. If you owe taxes and don't pay them they can lien or levy based on a notice only. (Notice of Intent to Levy) The lien is the same as any other PR item - paid is better than unpaid. Better to negotiate its removal while in the process of paying - and they do not have to agree to do the removal.

Who do you think is going to levy?

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Actually, from a purely FICO scoring standpoint, paid is not necessarily better than unpaid. However, I suppose it would "look" better to potential new creditors if it is reporting as paid.

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I did not mean or say it was better from a FICO perspective. It is better from a reality perspective and payment of a lien could well make the difference between an approval and a denial.

[Underh20]

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@Anonymous wrote:

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@fused wrote:

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@Anonymous wrote:

A tax lien is a public record like a judgement, but it is not a judgement and the taxing authorities do not need a judgement to lien or levy. If you owe taxes and don't pay them they can lien or levy based on a notice only. (Notice of Intent to Levy) The lien is the same as any other PR item - paid is better than unpaid. Better to negotiate its removal while in the process of paying - and they do not have to agree to do the removal.

Who do you think is going to levy?

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Actually, from a purely FICO scoring standpoint, paid is not necessarily better than unpaid. However, I suppose it would "look" better to potential new creditors if it is reporting as paid.

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I did not mean or say it was better from a FICO perspective. It is better from a reality perspective and payment of a lien could well make the difference between an approval and a denial.

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Only if that reality involved a manual review.