Have you ever received a phone call from a collection agency, either by the car debt, a home loan or credit card? Generally, they call around dinner time, between 6 and 8PM, when we are at home spending time with the family. Yes, it is an extremely unpleasant call and sometimes the bill collector is rude and even threatens you.
Four private collection agencies have been hired by the Internal Revenue Department, better known as the IRS. According to the IRS, these companies have been hired to protect taxpayers from threats and avoid confusion with scammers, who claim to call on the part of the IRS. IRS Commissioner, Mr. John Coskinen, says taxpayers should be alert on scammers posing as such agencies to create confusion and scam them.
The program began on April, sending the first letters, followed by telephone calls. To each of the four private agencies were assigned a certain number of contributors with whom they had to communicate. By the end of summer, the program will be extended gradually.
“The taxpayers whose accounts have been selected have already been contacted by the IRS multiple times under our normal collection processes, so they’re well aware they have an issue with back taxes” said Mary Beth Murphy, commissioner of the IRS’s Small Business and Self-Employed Division. “I also want to make clear that anyone whose account is turned over to a private company will first be notified by letter from the IRS before they hear from a private collector” Murphy told to reporters.
This is not the first time that the IRS tries to hire private collection agencies, in 2006 they tried. At that time, the IRS projected to raise $2.2 billion in revenue, but reports show that this program was a failure, resulting in a net loss of $4.5 million to the federal government, after having paid $86.2 million in administrative expenses and $16 million in commissions to collection agencies.
Therefore, this time and based on the above, the IRS pretends that the program they are implementing does not fail. These collection agencies are expected to act aggressively, jeopardizing the welfare of taxpayers. It is recommended that if you have tax problems contact a professional: Enrolled Agents (EA), lawyers or CPAs.