Tax Collection for the IRS


        Some of the most recent Tax news is that the IRS will restart a program that used private debt collection agencies to collect overdue Federal Taxes. These cases will deal with taxes owed over a number of years, starting with less than $50,000. Letters will be mailed to Taxpayers affected by this in the coming weeks, by the IRS and by the debt firm. The program will start slow, but thousands of letters will be mailed by this summer. The majority of Taxpayers will not notice the change, but there are details that we all should know, in order to avoid those who will try to take advantage of this adjustment
          There are only four companies involved in this program. Only they are authorized to represent the IRS in this matter. All payments will still go to the IRS, not to the debt collection agencies. This process always starts with letters, so any surprise phone calls demanding money is a thief trying to scam a Taxpayer. These are cases in which the IRS has already been dealing with the Taxpayer for some time, no need to worry if this not your situation.
          However, not all cases that meet these criteria will be transferred to a private collection agency. By law, those who already have a payment agreement in place will not be transferred. The same is true of those who are determined to be victims of identity theft, classified as an innocent spouse, or those who have passed away. Contacting a qualified Tax Professional to act as a representative in these dealings can be very helpful.

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