Does the IRS notify credit reporting agencies about tax liens?

Yes, the IRS does notify credit reporting agencies about tax liens. When a federal tax lien is filed against a taxpayer, it becomes a matter of public record. The IRS is required to provide notice of the tax lien by sending a Notice of Federal Tax Lien to the taxpayer's last known address. This notice alerts creditors and credit reporting agencies about the taxpayer's outstanding tax debt. The IRS also reports tax liens to major credit reporting agencies, such as Equifax, Experian, and TransUnion. This can have a negative impact on the taxpayer's credit score and make it more difficult to qualify for loans or credit. However, if a taxpayer pays off their tax debt or establishes a payment plan with the IRS, they may be able to have the tax lien released or withdrawn, which can improve their credit standing.