Have you ever noticed how some bad ideas tend to gain new life after a sufficient amount of time has passed for people to forget how bad they were the last time they were tried? Well, the IRS is bringing back an oldie, but not-so-goodie, starting as early as next spring – private debt collectors.
The IRS is preparing to outsource collection of some of its outstanding tax debts to four separate, private, for-profit companies in 2017. These companies will be assigned tax debts that are not actively being worked by IRS personnel.
During the IRS’ most recent experiment with private debt collectors, which ended in 2009, the cost of commissions to the collectors, together with the expenses of startup and administration, outstripped the amount of actual tax dollars collected – resulting in a net loss for the IRS!
Add to that the numerous ongoing phone scams that have people wary of dealing with anyone claiming to be working on behalf of the IRS, and you have a recipe for disaster. The use of private collectors is most likely an attempt to compensate for the reduction of IRS personnel over the past several years, but given the circumstances, you’d think a different approach might be in order. It will be interesting to see how things play out this time around.
TaxLane®, regularly assists taxpayers with Offers in Compromise, Installment Agreements, and the removal of IRS liens and levies.
To find out what options are available to you, contact our offices at (844) 479-9977. We will talk openly and honestly about your financial situation and provide you with the best possible strategy for dealing with your tax debt.