Tuesday, September 27, 2016

New Debt Collection Program Starts in the Spring

The IRS announced in IR 2016-125, that starting in the spring, the IRS will start using private debt collectors to collect on some tax debts. The tax debts that will be assigned to the collection agency are inactive tax debts that they do not have time to work.


The private contractors are supposed to follow all the same rules as the IRS while respecting taxpayers' rights. These contractors must also identify themselves as contractors and that they are not part of the IRS.


We will see how this plays out, but it seems that this is ripe for fraud and abuse of taxpayer rights.


Relevant Cites: IR 2016-125

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