Pre-employment screening can cover many different aspects of an applicant’s life depending on the position and what the company wants to know before making a job offer. We explain when and how this step might involve tax records.
“Background check” is a catch-all term that can include everything from searching criminal records to verifying a person’s educational credentials. When it comes to running a background check on employees, the level of screening will depend on the company’s requirements and any relevant laws for the industry. On some occasions, some screening will include tax records.
Basic background screening for entry-level jobs usually does not look at the individual’s taxes. However, when a person is applying for a position that involves working with the elderly, children, or other vulnerable people, more thorough screening will be done—including a check for any tax problems that may pressure the applicant to take advantage of the people under their care. This higher level of screening involves taking the applicant’s fingerprints. Generally, if prints are not taken, tax records will not be examined.
For some positions, the employer may require candidates to submit their tax records and file with the IRS to release private information for a complete tax background check. These occasions are rare and typically only occur for positions where the employee would handle large sums or have high-level access to confidential information.
Finally, tax liens may show up during pre-employment screening, as they are matters of public record. Small liens may not appear, but applicants owing $10,000 or more can expect their employers to find out.
