IRS Reporting Your Tax Debt to Credit Bureaus?

As of right now, the law will not allow for taxpayer debt to be reported to credit bureaus, but looming over us is the $400 BILLION taxpayer debt.  The Government Accountability Office has been written to assess the feasibility of it. The theory is that taxpayers will be more will to pay if their credit score is at risk.

Another question would be, of this $400 billion to the IRS, is any of that past due child support, as an example, which is handled by Financial Management Services (Department in the IRS who handles seizures of refunds)? How much, if any, could be allotted to cancelled debt from forms 1099-C that just have not been reported.

Although reporting debt to credit bureaus might incentivize some taxpayers to pay up, the cost of the scrutiny and process to find who should properly be reported might not be worth the end result of only getting some people to pay. Maybe they should just start putting warrants for arrest out.  Henry David Thoreau went to jail for not paying is taxes, and he had a good reason for not paying (war pacifist). What are the reasons for our current tax delinquents?


Posted: November 8, 2012

Want more info? We will contact you back within 1 business day.





  • Federal Direct knows the focus and dedication it takes to grow your tax business!



  • Be your clients’ hero! Our in-house Sure & Secure IRS Audit coverage makes you a true Problem Solver!


  • Federal Direct provides back office support to free your business up to GROW!


  • Ready to offer tax services to undocumented aliens? We have the training and support to make it happen!


Want more info? We will contact you back within 1 business day






By clicking "Send My Info," I consent to receive emails, text messages, and phone calls, which may be sent using emailing equipment or software, unless I opt-out from such communications. I understand that my consent to be contacted is not a requirement to purchase any product or service and that I can opt out at any time. I acknowledge that message & data rates may apply, and that message frequency varies.