Sponsored By Strategic Tax Defense
As was announced this past September by the IRS, and as a follow up to the piece of legislature called Fixing America’s Surface Transportation (FAST) Act, certain overdue tax debts will be turned over to private agencies for collection efforts this spring.
Old Debt
Four firms have been picked to be involved in this new way for the federal government to be able to collect old debt. They are CEB Group of Cedar Falls, IA; Conserve of Fairport, NY; Performant of Livermore, CA and Pioneer of Horseheads, NY.
 
The IRS states that the organization attached to each case “will give each taxpayer and their representative written notice that their account is being transferred to a private collection agency. The agency will then send a second, separate letter to the taxpayer and their representative confirming this transfer.”
Cause and Effect
Those who will be directly affected by this new arrangement include taxpayers who have not yet reached the age of 18, those who are now deceased, those who are victims of identity theft, those who have made payment arrangements to get rid of past tax debt and those who have been classified as innocent spouse taxpayers.
 
Also included in the cases to be transferred from the IRS to one of the four private firms who will help to collect the old debt will be taxpayers in presidentially declared disaster areas who are requesting relief from collection and taxpayers currently under civil examination, litigation, criminal investigation or levy.
Get Expert Help
This official transfer is set to take place in the spring of 2017, so if you are a person of interest with regard to this subject, now is the time to look into hiring a tax attorney to consult on the matter.
 
The collection companies mentioned above will work with certain citizens and their tax lawyers to take over accounts in which the IRS has not been privy to the right resources in order to effectively work on these cases. When working with their proposed clients, these private collection agencies will introduce themselves as specific IRS contractors who have been hired to assist in collecting past taxes.
Avoiding Scams
For safety’s sake, the private agencies working on behalf of the IRS will not request payment directly via the use of a prepaid debit card – a common ploy used by a number of phone scammers. Instead, these firms will let the taxpayers in question know about electronic payment that can be made online on www.irs.gov/payments. Payment by check can be sent directly to the IRS and should be written out to the US Treasury.
 
And so, as this IRS tax collection method shifts to the public sector particularly for collecting inactive tax debt, the Internal Revenue Service pledges to “do everything it can to help taxpayers avoid confusion and understand their rights and tax responsibilities…”
 
With that in mind, be secure in knowing that your money will go to the right place if you are involved in this shift in collection methods from the IRS to private concerns. Your best bet for making decisions on this matter, should you be involved, is to hire a expert IRS tax attorney who is trained to steer you in the right direction.
By Ellen Chadwick
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