IRS and Private Debt Collectors

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The terror of most Americans is to be hunted by the IRS for overdue taxes. Well, the terror has evolved a bit as the IRS is now using private debt collectors to do much of the work.

IRS and Private Debt Collectors

If you get behind on your taxes, you undoubtedly worry about the IRS hunting you down. Many people develop a false sense of security because nothing much seems to happen at first. There is no denying the IRS is a huge bureaucratic institution. It takes the agency a while to figure out you havent paid and get the collection ball rolling. At least, this used to be the case.

Regardless of your political affiliation, there is no denying that all politicians like to spend money. Of course, this means they need money. In 2004, our beloved leaders decided to speed up the collection process on delinquent taxpayers. In passing the American Jobs Act of 2004, the politicians gave the IRS the ability to hire third parties to collect the back taxes. Apparently, American Jobs Act referred to keeping debt collectors employed!

As you might imagine, debt collectors used by the IRS failed to follow most of the rules when attempting to collect back taxes from delinquent payers. To be honest, they ran roughshod over nearly every right guaranteed to taxpayers often threatening liens, judgments and even jail terms. Objections started being raised and politicians started getting an earful. Despite passing the law, the politicians immediately blamed the IRS and instructed the agency to take corrective measures.

The IRS has now taken steps too real in the bounty hunting debt collectors. The IRS will still be using the agencies, but will monitor their activity closely. The IRS will also be sending out a detailed notice to delinquent taxpayers on how the process works and what the debt collectors can and cannot do to collect back taxes. Specifically, the notice will let you know that debt collectors cannot take any action against you in regard to issuing tax liens, judgments and so on. All they can really do is keep calling and annoy you till you finally pay.

If debt collectors start calling you about back taxes, do not be intimidated. Wait for the notice from the IRS and then address your problems. If the debt collectors start threatening or intimidating you, contact the taxpayer advocate office immediately. You can find their contact information on the site of the IRS.

Richard A. Chapo is with http://www.businesstaxrecovery.com - information on taxes.Credit Personal Report Score
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