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IRS private collectors using some problematic tactics

On Behalf of | Jul 6, 2017 | IRS Issues

Partial privatization of tax collections has introduced a serious problem for Georgia residents. In some cases, collections agencies are using their affiliation with the IRS to harass people who alleged to owe the IRS money, and the tactics used are running afoul of the Fair Debt Collection Practices Act. Suggestions are provided for citizens looking to protect themselves from illegal activity carried out by IRS collectors.

One of the more common tactics to protect against when it comes to unscrupulous collectors is knowing what they can and can’t do. In the case of IRS collections firms, they cannot impose a tax lien or wage levy. Only the IRS can carry out enforcement to collect debt. Independent agencies are also barred from collecting directly. People should never be asked to make payment to anyone but the United States Treasury.

Besides invalid threats, collectors have also been known to attempt to rush people into paying without providing time for them to seek an appeal or ask questions about their balance. Taxpayers may have the right to an IRS audit appeal, and the final answer should not come from a collections agency.

The IRS operates under guidelines governing its behavior during an audit, collection attempts and other interactions with taxpayers. Private collections agents also must abide by the rules. Taxpayers who are harassed or threatened may benefit from legal assistance in combating the problem. Citizens looking to appeal their balance, argue complex tax issues or simply receive a reduction in penalties can likewise seek the help of an attorney versed in tax law.

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