Tax Debt reported to Credit Bureaus

Congress to consider allowing the IRS to report bad debt to credit bureaus

Congress is considering allowing the IRS to report tax debt to the three credit bureaus.

Equifax , Experian and TransUnion. The stated reason according to sources is because to promote earlier payment of debt.  I look at it from the standpoint of a bully having backup.

It has been proven that once the IRS audits you and wins (by tax payers giving into the pressure and not appealing the decision or just paying because they don’t want to deal with the hassle) This could possibly place many tax payers in a situation they cannot get out of. How would a tax payer borrow money to pay off the debt if they are not allowed to borrow money because the IRS reported owed debt to the credit bureaus.

 The IRS reporting debt to the Credit Bureaus may create or inflate the following.

• Larger financial burden for the tax payer
• Increase the amount of non filers.
• Increase the fear of the IRS

Allowing the IRS to report tax debt to the 3 major credit bureaus Is another attempt by congress to squeeze money out of the tax payer by intimidation and fear. You may be wondering why the government would allow the IRS to report tax debt, below are some logical (from my perspective) reasons for the government allowing this to happen.

• Lack of government fiscal responsibility
• Not many politicians want to attach their name to raising taxes on the middle class
• About $110 billion of the total debt was classified by IRS as uncollectable.

Possibly allowing the IRS to report tax debt is has no benefit to the tax payers but , it most definitely will help the IRS in their collection process. The question is at what cost?