IRS to Launch Private Debt Collection Program in Spring 2017

Posted on November 29, 2016

On September 26, 2016, the IRS announced that its new private debt collection program will debut in the spring of 2017 and that it has already selected four contractors to perform this work.

Private debt collectors will handle delinquent accounts from which the IRS has stopped trying to collect. Taxpayers will receive written notice from the IRS that their accounts will be handled by a private debt collection agency. These taxpayers will subsequently receive a separate letter from the private debt collection agency that their account has been transferred to it for collection.

Interestingly and appropriately, the private debt collection agencies must follow the provisions of the Fair Debt Collection Practices Act, something that the IRS does not have to follow. Further, the collectors will identify themselves as IRS contractors, not as the IRS. Two of the private debt collection agencies are located in New York. The others are located in Iowa and California.

Do you think that the IRS should turn the collection of old accounts over to a private debt collection agency? We question whether this is a good idea, especially because of the rampant identity theft that is going on today. By transferring taxpayer information to a private debt collection agency, the chances of identity theft substantially increase.

DO YOU OWE THOUSANDS TO THE IRS? CONTACT CHICAGO TAX LAWYER PATRICK T. SHEEHAN & ASSOCIATES. WE CAN NEGOTIATE YOUR TAX BURDEN TO PENNIES ON THE DOLLAR!