Back Taxes Owed To IRS Now Collected By Private Debt Collectors
Keywords: Back Taxes, tax, collection, irs, delinquent
According to a New York Times article that was released August of last year (2006), I.R.S. back taxes and delinquent taxes under $25,000 or less owed by taxpayers will now be attempted to be collected by up to three private collection agencies.
Two weeks after the article was published, data on 12,500 overdue taxpayers was turned over to the three private collection agencies.
Paying Private Tax Collectors to Collect From You
The article explains that although I.R.S. official representatives agreed at the time that this will be more costly than collecting this “low hanging fruit” by using internal means, they felt as though Congress forced this step by not allowing the hiring of more revenue officers.
These private collection agencies are expected to rake in upwards of $1.4 billion over a ten year period, with the agencies about $330 million of the sum. Do you want to give these companies a portion of your hard earned money instead of paying the I.R.S. in full or at a reduced negotiated rate for your tax obligation?
I.R.S. Email Scams & Telephone Fraud -
Law makers and IRS agents who were against this privatization plan said that by involving these collection agencies there is a greater chance for abuse of the system.
With private companies in the mix, they said, debtors could more easily be tricked into paying money to scam artists calling the debtor on the phone or sending an I.R.S. e-mail scam. I.R.S. e-mail scams were a popular scheme among hackers and opportunists in 2005.
Nina B. Olson, an I.R.S. taxpayer advocate, warned Congress earlier this year,
“Because private collectors will operate under rules of profit maximization rather than the I.R.S.’s customer-service based policy, the private collectors may have less incentive to safeguard taxpayer rights.”
Unmentioned I.R.S. Tax Penalties -
Al Cleland, a retired I.R.S. tax collector in Minnesota, predicted that using private collectors would cause some debtors to owe more than he/she did originally,
“We always told people to get current on their taxes first, so they would not have more penalties added, and then work on paying off their back taxes,” Mr. Cleland said. “A private collection agency has no incentive to tell taxpayers that, so people will pay more penalties.”
The private debt-collection agencies are outside the budget rules for Congress because, except for the start-up costs, the collectors are to be paid from the proceeds - commissions on your overdue taxes.
I.R.S. News Commentary -
You read it right folks. These agencies will make every effort to contact you because it puts a portion of your owed tax money in their pockets. Why else would a company volunteer for such a thing? Civil service duty? Being a good corporate citizen?
These companies have no reason to make you aware of penalties and time tax amnesty deadlines or even work with you and the I.R.S. Settle your debts in a more reasonable fashion by using offers in compromise and/or I.R.S. payment plans with our help.
The Future of I.R.S. Debt Collection -
You now have more reason than ever before to get delinquent taxes taken care of with the I.R.S. before these companies annoy, pester, and threaten you by phone calls and letters.
It is a sad state of affairs, but I.R.S. debt collection privatization is the new direction of the federal government. The original New York Times article stated that by 2008, about 350,000 past-due tax records will be distributed among about 10 private debt-collection agencies.
This problem is not going away any time soon. Get started by learning about your I.R.S. debt options and contact us today for your free tax help analysis.
Resources -
The New York Times
Neil Lemons represents Allied Tax Solutions, a 30 year leader in IRS help & tax relief solutions helping individuals and companies. For more information or a free consultation visit www.alliedtaxsolutions.com.
Previous Articles Highlighter:
Tips For Archery Fishing (1)
3. Ambush. Fish that are best ambushed are the ones that are spawning since they tend to crowd thus increasing chances of target. Pino Tedesco is a leading web content provider, get free fishing articles from his article directory.
Generate Traffic And Affiliate Sales With Free Viral Reports (2)
Once you have begun building a forum buzz for the report, you will want to go to e-zine owners in your particular niche and ask them if they are interested in getting a free report on whichever subject you are marketing.
Opt-In List - How To Grab Your Readers Attention With Your Subject (3)
Getting people to open them is not as easy. You don't want to waste all the time and effort used in making the newsletters, you want people to read them and have their interests piqued.
E-Commerce Wholesale Systems- Which One? (4)
Now compare the potential your tangible store could have by providing specific sub-niche merchandise like our Playstation 3 wholesale merchandise for re-sell? Would you be more likely to visit a specialized e-commerce store or a general store for the purpose of seeing specifics?
Why Chainsaw Users Appreciate Echo? (5)
It's now firmly placed as one of the leaders in Chainsaw technology having built up an impressive reputation during the past three decades. In fact, if appreciation awards were being handed out by chainsaw users, then Echo, which has been described as the most appreciated chainsaw among professional woodcutters, would just about clean up!
Effective Natural Acne Treatments (6)
The liver sluffs off toxins from bad foods, drinks, drugs and chemicals and sends them through your skin resulting in skin eruptions, acne, pimples and other skin disorders. In any case, no matter what skin or acne treatment you choose, whether it is chemical, drugs, alternative, or natural methods, changing your diet will result in your overall good health!
Resurfacing Your Concrete Driveway (7)
If that is the case better to hire the professionals. There are plenty of good concrete resurfacing service available. You don't want your resurfaced driveway looking like it has been hit by a scud missile.
Bathroom Vanities Can Transform A Bathroom (8)
Many newly built or newly renovated homes feature natural stone bathroom vanities of all colors and textures with sleek and contemporary drawers and cabinets below. Topping off the polished look are a myriad of knob and handle styles; everything from pewter and ceramic to brushed nickel and wrought iron.
The Beauty Of Rock Fireplaces (9)
If you desire to elevate your home to the next level, look into rock fireplaces as a beautiful and functional centerpiece. For more information on fireplaces, try visiting www.fireplacechoices.com - a website that specializes in providing fireplace related tips, advice and resources including information on rock fireplaces.
7 Top Tips To Make Money Using Your List (10)
The more people who buys from them, the more earnings you get. 4) You may also get products from other sites on a consignment basis and sell them to your list via your newsletter.
Newer Articles Highlighter:
Best Fishing Lures To Use (1)
Below are some of the typical lures used for fishing. Light Standard Casting Lures For Standard casting lures, they are mostly able to attract a wide range of fish varieties from albacore, bluefish, bonita, oho and crappies.
Elevation Of Aspen Colorado (2)
Mountains huts are the best places to stay in Colorado if you enjoy high elevation. For years, these mountain huts have sheltered the world's skiers and climbers. The first mountain hut was perhaps seen in the Alps where hundreds of these structures cling to cliffs and sit in alpine meadows.
Two Common Negotiating Mistakes Copywriters Make, And How To Avoid Them (3)
Financially ruinous negotiating tactic #2 comes from one of my recently "graduated" coaching students. She asks: "Do you always quote based on your time or do you quote based on the value the project has to the client?" The answer is to always quote based on the value to the client.
Writing A Great Resource Box For Your Articles (4)
Use your real name, not the name of your business. People will feel more of a connection with a name rather than a faceless business. I don't care how cute or how keyword stuffed your business name is.
Career Management Defined (5)
Keywords: Career Management Defined, career management definition, self-management, career management Career self-management is controlled by the concerned individual and includes certain plans and information applicable for future career decision-making and problem solving.
Attractions Of Nairobi (6)
This is a place of great contrasts where race, tribe and origin all become facets of a unique Nairobi character. Douglas Scott works and writes for www.carrentals.co.uk and has written about Iceland
Wild Kenya Lands (7)
High altitude Kenya offers something for everyone. There are refreshing hill walks through bird rich areas or more active hikes into forests. Above all there is mighty Mt Kenya, whose slopes are the perfect trekking destination.
Your Best Auto Insurance Quote (8)
As a result the competition in rates is very strong between companies with the desire to obtain customers driving costs down but the need for profits pushing the premiums up.
How To Create Your MLM Prospecting System (9)
However, they must be followed in a sequence. By skipping steps, or starting with the last step first, you will be no better off than when you didn't have any system in place.
Make Truckloads Of Money Selling Other People's Products. (10)
Another option, and usually an easier one, is to sign up as a member of an affiliate network, although other companies and networks may ask you to pay a fee.
Permalink to Back Taxes Owed To IRS Now Collected By Private Debt Collectors