Do income tax penalties show up on your credit history? - Tilted Forum Project Discussion Community

Amano · 02-25-2007, 07:09 PM

Through some confusion on my part with rules for changing state residency, I may take a penalty this year for not having payed 2006 Estimated Taxes in order to save a couple of thousand dollars over the next few years in state taxes.

The reason for the tax penalty is not so relevant to my question for you guys, however. My question is, would a minor tax penalty on CA state taxes (not federal) show up on my credit history and hurt me financially in more ways than the penalty itself?

Does anyone know the answer to this? I'd appreciate any input you can give.

SirLance · 02-26-2007, 06:16 PM

Only if a levy occured. Levies can show up on your credit history. Penalties do not.

thingstodo · 03-03-2007, 02:51 PM

Quote:

Originally Posted by SirLance

Only if a levy occured. Levies can show up on your credit history. Penalties do not.

A penalty is like a fine for not doing something. That's not a credit situation.

MSD · 03-10-2007, 12:48 PM

I'm paying interest and penalty on back taxes from 2005 and my credit rating is still in the upper 700 range and has not gone down.

02-25-2007, 07:09 PM	#1 (permalink)
Amano Insane	Do income tax penalties show up on your credit history? Through some confusion on my part with rules for changing state residency, I may take a penalty this year for not having payed 2006 Estimated Taxes in order to save a couple of thousand dollars over the next few years in state taxes. The reason for the tax penalty is not so relevant to my question for you guys, however. My question is, would a minor tax penalty on CA state taxes (not federal) show up on my credit history and hurt me financially in more ways than the penalty itself? Does anyone know the answer to this? I'd appreciate any input you can give.

02-26-2007, 06:16 PM	#2 (permalink)
SirLance Junkie Location: In the middle of the desert.	Only if a levy occured. Levies can show up on your credit history. Penalties do not. __________________ DEMOCRACY is where your vote counts, FEUDALISM is where your count votes.

03-10-2007, 12:48 PM	#4 (permalink)
MSD The sky calls to us ... Super Moderator Location: CT	I'm paying interest and penalty on back taxes from 2005 and my credit rating is still in the upper 700 range and has not gone down.