The collection of private tax by the Internal Revenue Service through private tax collectors is as scary as you think – especially if you are poor. Now, imagine four big private debt collection firms trying to get some as well, crazy, right? Analysts observed a trend in 2017 that over 5,000 poor people made unnecessary tax payments. As usual, the choice to present the new program comes from the lawmakers in government, giving power to select contractors to gather unpaid individual tax debts through their employers. Even with different exchanges from the tax agency to taxpayers, unpaid tax bill persists. In this article, we will discuss the new IRS policy.
The Introduction of Private Debt Collectors
A representative from the agency has shared its plans highlighting the future steps to be taken during this project to guarantee the chosen private collection firms are respecters of taxpayer rights and are responsible. Educating workers on scams done by tricksters through shady schemes is another activity for which the IRS is responsible.
Kicking off the program starts with mailings sent out to a couple of hundred taxpayers followed by calls placed to about the same amount before a thousand more contacts are added to the list. Though the first communication to defaulting taxpayers will be through the IRS through multiple means, follow-up efforts will be handled by contracted private firms.
How The Program Works
To know how the program works is essential. The IRS first sends a letter to the taxpayer and tax representative with information on their account assignment. The content of the mail carries a publication of what to expect with the account. The chosen private firms send their own letters to both the same recipients immediately after the IRS has sent theirs. Since security is important, information that will assist taxpayers know the tax amount owed and how to determine legitimate collection agencies are also sent. Only IRS employees can take enforcement actions against taxpayers – this means that private firms can’t do this. Individuals with disabilities felt the heat of this. These private collector’s aim was to stash barely above a quarter made on all tax payments the government receives.
Scammers are on a Rampage
There will be a lot of scammers posing as private collection firms – this is why the IRS has been doing some education on their own to warn people about it. Private collection firms must follow the steps outlined above.
The Poor are getting the Brunt of this policy
Since the IRS began this new policy of hiring private debt collectors, the poor and disabled have suffered the most. Before the IRS started to outsource, people unable to pay their debts were given a reprieve, but since the outsourcing, these poor taxpayers have to state by themselves that they can’t afford to pay. This is because the contractors do not receive the income level of said tax payer. Reports show that a high percentage of the money collected by these private collectors was from low-income families.
If you or a family member is being harassed by a debt collector, you need help. The attorneys at The Debt Relief and Education foundation can help you navigate this complex issue. Contact the attorneys at The Debt Relief and Education Foundation today for a free consultation.