Does the IRS Show Up on Background Checks?

Background checks are a common practice for employers seeking to assess the suitability of potential candidates. These checks delve into various aspects of an individual’s history, including criminal records, education, and employment. However, the question arises: do background checks reveal tax-related information, such as Internal Revenue Service (IRS) records? This article examines the intersection of background checks and tax records, providing insights based on relevant sources.

Tax Liens and Background Checks

• Public Record: Tax liens are public records, meaning they are accessible to anyone who searches for them.
• Civil Court Background Checks: These checks typically search state-level lower and upper civil court records, which may include tax liens.
• Impact on Hiring: Employers may consider tax liens as a factor in hiring decisions, as they can indicate financial responsibility and stability.
• Exceptions: Some states have laws that limit the reporting of tax liens on background checks.

IRS Tax Records and Background Checks

• General Exclusion: IRS tax records are not typically included in standard background checks.
• Exceptions: In rare cases, employers may request candidates to submit tax records for a complete tax background check.
• Consent Required: Employers must obtain written consent from candidates before accessing their IRS tax records.

Factors Influencing Tax Record Disclosure

• Position Sensitivity: Employers are more likely to request tax records for positions involving high levels of financial responsibility or access to confidential information.
• Adverse Action: If an employer discovers a tax lien or other tax-related issue during a background check, they must follow the adverse action process outlined by the Fair Credit Reporting Act (FCRA).

While tax liens may appear on civil court background checks, IRS tax records are generally not included in standard background checks. However, employers may request tax records for certain sensitive positions. It is important for candidates to be aware of the potential for tax-related information to be disclosed during background checks and to provide accurate and complete information to avoid any adverse consequences.