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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