Question

Which of the following is TRUE if you do not pay your taxes?

1) You owe twice as much the following year
2) You're more likely to be approved for low interest loans
3) You cannot go to jail (but you will be heavily fined)
4) Your credit score may be impacted

Answer 1

If you do not pay your taxes, it can hurt your credit score. The correct answer is option 4.

Step-by-step explanation:

If you do not pay your taxes, one of the consequences is that your credit score may be impacted. This means that if you fail to pay your taxes, it can harm your creditworthiness, making it more difficult for you to obtain loans or credit in the future.

For example, if you apply for a loan and the lender checks your credit history and sees that you have not paid your taxes, they may view you as a higher-risk borrower and offer you a higher interest rate or deny your application altogether.

It's important to fulfill your tax obligations to avoid any negative impact on your credit score and financial future.