Once you have a public record due to a bk can a potential creditor search IRS files using your SS# to verify your income? Or verify with any other method?
As far as I know...ONLY WITH A COURT ORDER, can you get IRS information... Why would they waste their time??? The income can be found out by calling your employer...5 minutes...they have the answer... They usually don't waste their time on income verification anyway...
Let's see - CRA's only know what you put on applications. If someone does a background check on you, (Equifax does those too) and talks to your friends or neighbors - like if you applied for a lot of life insurance, then your friends or neighbors might tell them, but that isn't proof. If someone has your employer's name, they still cannot get your income without going through a special procedure - like if you applied for certain kinds of mortgages. HR people do not give out any information. The IRS does not give out information. With your ssn, they may be able to get employment and income information from Social Security, but only for certain reasons, and collecting or suing you isn't one of them. Same with DMV. As an agent, I have gotten people's driving record, which contains ssn sometimes, and street address, but I had to have a signed letter from the person whose driving record I got. Generally, if someone wants to know where you work and what you make, it is because you have applied for insurance or credit in large amounts, and you will sign a form called "information practices" for short, and any other forms agreeing to release that information. Those would then be sent to your employer. You employer would then send you a notice and a second form to sign authorizing the release of information again (from their end), and then they would give out the information. If you changed your mind in the meantime, you could stop the info from going out. A simpler method of ascertaining employment and income is a lender will ask you for a recent paycheck stub, a a W2 or or your 1040 for the previous year. So, it isn't all that easy to get that info without your permission. Linda
Felice -- Breeze is right. If a potential creditor wants to verify your income, they will ask you for proof. If you don't give it to them, or if you give them conflicting info, they will not approve your credit, simple as that. But you needn't worry about companies checking with the IRS.
Lionel, Thanks. I appreciate this new knowledge. I was concerned since I am self-employed and inflate my income numbers a tad when applying for credit.
Another verification of the employer salary verfication. Was told specifically by HR that if an ex-employee lists me as a reference, that I can ONLY comment on dates employed and job title. No salary info. In fact, they prefer that the potential employer be referred to HR. HR cannot give out salary info without your prior permission. You cannot even comment anymore on employee performance, only whether they are eligible for re-hire, nevermind salary (Current or range). Hope this helps.
