Will Larson Tax Relief Hurt Your Credit?

Will Larson Tax Relief Hurt Your Credit?

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Welcome to a comprehensive exploration of Larson Tax Relief and its potential impact on your credit. Navigating the world of tax liability and relief can be a daunting task, but it’s vital to understand the potential consequences and benefits of using tax relief services.


Larson Tax Relief, a family-owned company, has been providing relief to individuals and businesses since 2005. They specialize in representing clients who are dealing with IRS and state tax problems. However, an important consideration is the potential impact that using such a service might have on your credit score.

Larson Tax Relief

Understanding Larson Tax Relief

Larson Tax Relief is a tax resolution firm providing nationwide service, renowned for its customer-centric approach. Their team of tax professionals, including Enrolled Agents and tax attorneys, work on behalf of taxpayers to resolve their issues with the IRS and state tax agencies.

They offer a range of services, including emergency tax relief for urgent tax issues, long-term tax resolution, business tax resolution, and various tax preparation services. The process begins with a comprehensive consultation to understand the client’s tax situation and devise a suitable action plan.

The Interplay Between Tax Relief and Credit Scores

Will Larson Tax Relief Hurt Your Credit? 1
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Credit scores are numerical expressions based on a level analysis of a person’s credit files, representing the creditworthiness of an individual. They’re influenced by several factors, including payment history, credit utilization, length of credit history, new credit, and credit mix.

Having a tax debt can negatively affect your credit score. If left unpaid, the IRS can file a Notice of Federal Tax Lien, a public document alerting creditors that the government has a legal right to your property due to unpaid tax debt. This can seriously harm your credit score.

Will Larson Tax Relief Hurt Your Credit?

The potential impact of using Larson Tax Relief on your credit score depends on various factors. If you’re already dealing with unpaid taxes and the IRS has filed a tax lien against you, hiring Larson Tax Relief to help resolve your tax issues could potentially improve your credit score, as they might be able to get your tax debt reduced or help set up a payment plan.

However, if your tax debt is not substantial and hasn’t yet affected your credit, paying it off directly might be a better solution than hiring a tax relief service, as the fees might outweigh the benefits.

Pros and Cons of Using Larson Tax Relief

The primary advantage of using Larson Tax Relief is their expertise in handling complex tax issues, potentially saving you from severe penalties or even criminal charges. They can also help reduce stress by dealing directly with the IRS on your behalf.

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However, Larson Tax Relief’s services come at a cost, which can be a significant consideration. Additionally, while they may help resolve your tax issues, they cannot directly improve your credit score. It’s also worth noting that while Larson Tax Relief enjoys a good reputation, results may vary depending on the specifics of your tax situation.

Precautions When Using Tax Relief Services

When dealing with tax relief services, it’s crucial to keep your long-term financial health in mind. Ensure you understand the fees involved and weigh them against the potential benefits. Also, be wary of any company that promises to drastically reduce your tax debt without a thorough analysis of your situation.


In conclusion, while Larson Tax Relief can be a valuable service for those struggling with severe tax issues, the impact on your credit score largely depends on your specific circumstances. It’s vital to consider all the pros and cons and take necessary precautions when using any tax relief service.

We encourage our readers to share their experiences and thoughts about using tax relief services. If you have any questions or need further clarification, don’t hesitate to reach out. Remember, understanding your options is the first step towards a healthier financial future.


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Q: Does hiring Larson Tax Relief affect my credit score?

A: No, hiring Larson Tax Relief to manage your tax issues does not directly impact your credit score. However, depending on the resolution to your tax problems, your credit score may be indirectly affected.

Q: What impact can unpaid taxes have on my credit score?

A: Unpaid taxes can lead to the IRS filing a tax lien against you, which can significantly hurt your credit score. Resolving your tax issues with Larson Tax Relief can help prevent or resolve such a lien, which can indirectly help your credit.

Q: Can a tax lien be removed from my credit report?

A: Yes, once the back taxes are paid off, you can request that the IRS withdraw the lien. Once withdrawn, it can be removed from your credit report.

Q: If I enter a payment plan with the IRS through Larson Tax Relief, will this hurt my credit?

A: A payment plan itself won’t hurt your credit. However, the record of the tax lien, if one was filed, remains on your credit report.

Q: Does settling for less than I owe with an Offer in Compromise affect my credit score?

A: The IRS doesn’t report your Offer in Compromise to credit bureaus, so it won’t directly affect your credit score. However, the tax lien remains on your credit report until the offer is paid in full and the lien is withdrawn.

Q: Can Larson Tax Relief help me improve my credit score?

A: While Larson Tax Relief does not directly deal with credit scores, resolving your tax issues can indirectly improve your credit score over time by removing tax liens and preventing new ones.

Q: How long does a tax lien stay on my credit report?

A: As of 2018, tax liens no longer appear on credit reports. However, they are public record and can impact your ability to get credit or loans.

Q: How can I prevent a tax lien from being filed against me?

A: The best way to prevent a tax lien is to pay your taxes in full and on time. If you can’t do that, Larson Tax Relief can help you set up a payment plan or negotiate an Offer in Compromise with the IRS.

Q: Does the IRS report to credit bureaus?

A: No, the IRS does not report your tax debt or your payment history to credit bureaus directly. However, if they file a tax lien, this becomes public record.

Q: Can Larson Tax Relief help me get a loan or credit?

A: Larson Tax Relief is a tax resolution service and does not directly assist with loans or credit. However, by resolving your tax issues and avoiding tax liens, they can help improve your overall financial health, which can make it easier for you to get loans or credit in the future.


Larson Tax Relief: A company that helps taxpayers negotiate with the IRS to reduce their tax debt.

Credit: A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date.

Credit Score: A statistical number that evaluates a consumer’s creditworthiness. It’s based on credit history.

IRS: The Internal Revenue Service, the U.S. government agency responsible for tax collection and tax law enforcement.

Tax Debt: An amount of money that an individual, business, or other entity owes to the IRS.

Negotiation: A discussion aimed at reaching an agreement.

Financial Hardship: A situation where a person cannot keep up with debt payments and/or bills.

Installment Agreement: A plan for paying off tax debts in regular, manageable payments.

Offer in Compromise (OIC): A program through which the IRS agrees to accept less than the full amount of tax debt owed.

Tax Lien: A claim by the government that attaches to a taxpayer’s property due to unpaid tax debt.

Credit Report: A detailed breakdown of an individual’s credit history prepared by a credit bureau.

Tax Levy: A legal seizure of property to satisfy a tax debt.

Credit History: A record of a borrower’s responsible repayment of debts.

Credit Bureau: An agency that collects and researches individual credit information and sells it for a fee to creditors.

Payment Plan: An agreement with the lender to pay back a loan over a specific period of time.

Debt Settlement: An approach to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full.

Tax Relief: Any program or incentive that reduces the amount of tax owed by an individual or business.

Collection Agency: A company used by lenders or creditors to recover funds that are past due or in default.

Wage Garnishment: A legal procedure in which a person’s earnings are required by court order to be withheld by an employer for the payment of a debt.

Financial Counseling: A service that helps individuals manage their money, credit, and debt, as well as plan for their financial future.

Tax Relief Companies: Tax Relief Companies are firms that specialize in providing services to individuals or businesses who owe taxes. A tax relief company can help clients negotiate lower tax debts, set up payment plans, or reduce penalties and interest with tax authorities. Most tax relief firms often have tax professionals, such as attorneys or certified public accountants, who understand tax laws and procedures.

Significant Tax Debt: Significant Tax Debt refers to a substantial amount of unpaid taxes owed to a government authority such as the IRS.

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