The IRS, reeling from recent budget cuts, has contracted with four private debt collection agencies collect overdue tax liabilities on the IRS’s behalf. Starting this upcoming Spring, these agencies will be seeking repayment of overdue tax liabilities that the IRS is not actively seeking due to its lack of available resources. Any taxpayer whose tax liability is being transferred to one of these agencies will be informed of such via written letters first by the IRS, then by the collection agency itself. If you’re affected by this, be aware that these agencies must adhere to the provisions of the Fair Debt Collection Practices Act. Also beware of the inevitable fraudulent scams that will likely follow. Private collection agencies working on behalf of the IRS will never ask for payment on a prepaid debit card. All payments should be made via the IRS website, or with a check made payable to the United States Treasury.
If you would like to speak with a tax professional about your tax situation, please contact us.