| According to a New York Times article that was | | | | Al Cleland, a retired I.R.S. tax collector in Minnesota, |
| released August of last year (2006), I.R.S. back taxes | | | | predicted that using private collectors would cause |
| and delinquent taxes under $25,000 or less owed by | | | | some debtors to owe more than he/she did originally, |
| taxpayers will now be attempted to be collected by up | | | | "We always told people to get current on their taxes |
| to three private collection agencies. | | | | first, so they would not have more penalties added, |
| Two weeks after the article was published, data on | | | | and then work on paying off their back taxes," Mr. |
| 12,500 overdue taxpayers was turned over to the | | | | Cleland said. "A private collection agency has no |
| three private collection agencies. | | | | incentive to tell taxpayers that, so people will pay more |
| Paying Private Tax Collectors to Collect From You | | | | penalties." |
| The article explains that although I.R.S. official | | | | The private debt-collection agencies are outside the |
| representatives agreed at the time that this will be | | | | budget rules for Congress because, except for the |
| more costly than collecting this "low hanging fruit" by | | | | start-up costs, the collectors are to be paid from the |
| using internal means, they felt as though Congress | | | | proceeds - commissions on your overdue taxes. |
| forced this step by not allowing the hiring of more | | | | I.R.S. News Commentary - |
| revenue officers. | | | | You read it right folks. These agencies will make every |
| These private collection agencies are expected to | | | | effort to contact you because it puts a portion of your |
| rake in upwards of $1.4 billion over a ten year period, | | | | owed tax money in their pockets. Why else would a |
| with the agencies about $330 million of the sum. Do | | | | company volunteer for such a thing? Civil service |
| you want to give these companies a portion of your | | | | duty? Being a good corporate citizen? |
| hard earned money instead of paying the I.R.S. in full or | | | | These companies have no reason to make you |
| at a reduced negotiated rate for your tax obligation? | | | | aware of penalties and time tax amnesty deadlines or |
| I.R.S. Email Scams & Telephone Fraud - | | | | even work with you and the I.R.S. Settle your debts in |
| Law makers and IRS agents who were against this | | | | a more reasonable fashion by using offers in |
| privatization plan said that by involving these collection | | | | compromise and/or I.R.S. payment plans with our help. |
| agencies there is a greater chance for abuse of the | | | | The Future of I.R.S. Debt Collection - |
| system. | | | | You now have more reason than ever before to get |
| With private companies in the mix, they said, debtors | | | | delinquent taxes taken care of with the I.R.S. before |
| could more easily be tricked into paying money to | | | | these companies annoy, pester, and threaten you by |
| scam artists calling the debtor on the phone or sending | | | | phone calls and letters. |
| an I.R.S. e-mail scam. I.R.S. e-mail scams were a | | | | It is a sad state of affairs, but I.R.S. debt collection |
| popular scheme among hackers and opportunists in | | | | privatization is the new direction of the federal |
| 2005. | | | | government. The original New York Times article |
| Nina B. Olson, an I.R.S. taxpayer advocate, warned | | | | stated that by 2008, about 350,000 past-due tax |
| Congress earlier this year, | | | | records will be distributed among about 10 private |
| "Because private collectors will operate under rules of | | | | debt-collection agencies. |
| profit maximization rather than the I.R.S.'s | | | | This problem is not going away any time soon. Get |
| customer-service based policy, the private collectors | | | | started by learning about your I.R.S. debt options and |
| may have less incentive to safeguard taxpayer rights." | | | | contact us today for your free tax help analysis. |
| Unmentioned I.R.S. Tax Penalties - | | | | |