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IRS Private Tax Collectors Are Accused Of Illegal Tactics

THE IRS IS USING PRIVATE COLLECTION AGENCIES AGAIN!

Congress approved letting the IRS farm out some collections back in 2015. In 2017, the IRS made private collectors a reality. The IRS will send out a notice to taxpayers first that the debt is being farmed out, to help prevent scams.

YOU MAY NEVER RECEIVE THE NOTICE. THE IRS CAN SEND THE NOTICE TO ANY ADDRESS THEY HAVE ON FILE.

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When you have an income tax debt, you need a strategy, a plan to achieve success. Contact the best IRS tax help team at Flat Fee Tax Service, Inc. and find out what kind of plan is right for you.

IF YOU GET A CALL FROM A COLLECTION AGENCY REPRESENTING THE IRS, THANK THEM FOR CALLING, SAY "GOOD BYE" AND CALL FLAT FEE TAX SERVICE, INC. PROTECT YOURSELF.

However, now some outside collectors are being accused of illegal practices. The New York Times reports that Pioneer Credit Recovery is urging people who owe taxes to raid their 401(k), get employer loans, increase credit card debt, etc. This letter sent by four U.S. Senators accuses Pioneer of violating numerous laws and policies and makes for sobering reading. Long before private collectors had any role in collecting tax debts, big concerns were voiced. The Inspector General for Tax Administration is critical here, as is National Taxpayer Advocate Nina Olson here.

WHENEVER COLLECTION AGENCIES ARE USED, CONSUMERS/TAXPAYERS WILL BE ABUSED.

But Congress went ahead, and the IRS has implemented it. The IRS will send a letter to the taxpayer and any authorized tax representative informing them that their account is being assigned to a collection agency. This letter gives the name and contact information for the collection agency. This mailing will include a copy of IRS Publication 4518, What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency.

Once the IRS letter is sent, the designated private collector will send its own letter to the taxpayer (and representative) confirming the transfer. But now that IRS debt collectors are accused of illegal tactics, there may be added worries. The law says that employees of these collection agencies must follow the provisions of the Fair Debt Collection Practices Act. Like IRS employees, they must be courteous and must respect taxpayer rights.

WE ALL KNOW THAT YOU CANNOT TRUST COLLECTION AGENCIES.

YOU NEED TO HAVE YOUR RIGHTS PROTECTED.

The private firms are authorized to discuss payment options, including setting up payment agreements with taxpayers. But as with cases assigned to IRS employees, any tax payment must be made, either electronically or by check, to the IRS.

DO NOT AGREE TO ANY PAYMENT PLAN WITH THE COLLECTION AGENCY. THE COLLECTION AGENCY WILL NOT KNOW IF YOU ARE CURRENTLY NOT COLLECTIBLE. THE COLLECTION AGENCY WILL NOT KNOW IF YOU CAN SETTLE YOUR INCOME TAX DEBT THROUGH THE OFFER IN COMPROMISE PROGRAM.

THE COLLECTION GETS PAID ON A PERCENTAGE OF WHAT IS COLLECTED. THE COLLECTION AGENCY WILL TRY AND BADGER YOU INTO AGREEING TO A PAYMENT MUCH HIGHER THAN WHAT YOU SHOULD BE PAYING.

A payment should never be sent to the private firm or anyone besides the IRS or the U.S. Treasury. Checks should only be made payable to the United States Treasury. Private firms are not authorized to take enforcement actions against taxpayers. Only IRS employees can take these actions, such as filing a notice of Federal Tax Lien or issuing a levy.

The IRS and its contractors are never supposed to:

1. Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes, and if a case is assigned to a PCA, both the IRS and the authorized collection agency will send the taxpayer a letter. Payment will always be to the United States Treasury.

2. Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.

3. Demand that taxes be paid without giving the taxpayer the opportunity to question or appeal the amount owed.
Ask for credit or debit card numbers over the phone. For more information, visit the “Tax Scams and Consumer Alerts” page on IRS.gov.

NEVER AGREE TO AN IRS INSTALLMENT AGREEMENT (PAYMENT PLAN) BEFORE YOU CALL FLAT FEE TAX SERVICE, INC. FOR YOU FREE AND CONFIDENTIAL CONSULTATION. NEVER!

Some struggling taxpayers may qualify for an offer-in-compromise. This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.

If you have a large tax debt, you might also have trouble traveling, since the IRS can move to revoke passports. If you owe more than $50,000, consider ways to keep IRS from taking your passport.

HAVE A FLAT FEE TAX SERVICE, INC. IRS TAX ATTORNEY REPRESENT YOU.

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GREAT PEOPLE DOING GREAT WORK.

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Phone. 800-589-3078

Email. info@flatfeetaxservice.us