Tax Problems Blog

December 19, 2017

IRS – Private Debt Collectors

Filed under: IRS Levy and Tax News — Administrator @ 12:31 pm

The Internal Revenue Service is again using Private Debt Collectors to collect outstanding inactive tax receivables. The Internal Revenue Service Advisory Council (2017 Report) has raised a number of issues regarding the use of Private Debt Collectors, discussed below.

1. Taxpayers and their representatives have dealt solely with the IRS concerning the collection of outstanding tax debts. The use of Private Debt Collectors introduces another layer of complexity with the potential for diminishing transparency.

2. Increased opportunities for Identity Theft, Fraud and Scamming of taxpayers.

3. The Private Debt Collectors will have access to confidential taxpayer information, increasing the potential abuse of taxpayer confidential information. Further, since taxpayer data will now reside on additional databases, there is an increase in the taxpayer’s exposure to potential identity theft by hackers.

4. Concerns about fraudsters claiming to be the IRS demanding immediate payments to fraudulent accounts.

5. The Private Debt Collectors may be motivated to use aggressive tactics since their compensation is based on a percentage of their collections.

If you owe the IRS, contact me. The consultation if free.

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