Three People Who Can Do an IRS Tax Lien Search

If you owe back taxes with the Internal Revenue Service, they may file a Notice of Federal Tax Lien in the public record to put creditors on notice that they have a claim. This may limit your access to credit and other important business resources. Here are three instances where a person may perform an IRs tax lien search on you.

1. When Applying For Credit. Loan – Whenever you apply for new credit or to refinance existing debt, you give the potential lender permission to check your credit, including performing an IRS tax lien search. This would include a loan for real estate, automobiles, credit cards or any other consumer debt. If the potential lender sees an existing tax lien, you may not be eligible for favorable rates or may even be turned down for credit.

2. When Applying For a New Job – Many employers routinely check credit reports of potential new employees before making a hiring decision. While the presence of a federal tax lien on your report is not an immediate deterrent to obtaining a job, it may make a difference if the market is competitive.

3. When Leasing a Residence – If you are looking to rent a new place, your potential landlord may pull a credit report before signing a lease with you. An IRS tax lien will not necessarily make or break the transaction, but you may be asked to explain the circumstance behind the lien.

The best way to make sure that an IRS tax lien does not appear to potential creditors, landlords or employers is to work out an arrangement with the IRS to resolve your past due account. You may want to consult with an experienced IRS tax attorney to find out your options.