---
title: Does Owing the IRS Hurt My Credit Score? | TaxTruce
url: https://taxtruce.com/answers/does-owing-the-irs-hurt-my-credit
updated: 2026-10-29
---

# Does owing the IRS hurt my credit score?

Updated October 8, 20262 sourcesTaxTruce team[Fact checked](/editorial-standards)

The short answer

The debt itself is between you and the IRS. But if the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit, the IRS says. A lien is a public notice. Lenders can find it.

A lien withdrawal removes the public notice. You may ask for one after the lien is released, or on a direct debit plan if you owe $25,000 or less.

## Words to know

[Federal tax lien](/glossary)
:   The government's legal claim on your property when you don't pay a tax debt.

[Lien withdrawal](/glossary)
:   Removal of the public lien notice. You still owe the debt. Ask with Form 12277.

[Notice of Federal Tax Lien](/glossary)
:   A public notice the IRS files to tell creditors it has a claim on your property.

## Sources

1. [IRS: Understanding a federal tax lien](https://www.irs.gov/businesses/small-businesses-self-employed/understanding-a-federal-tax-lien)
2. [IRS: Understanding your CP504 notice](https://www.irs.gov/individuals/understanding-your-cp504-notice)

Run the numbers with our [free tax tools](/tools), like the penalty and payment plan math.