Question:
I know the law changed recently allowing the IRS to use private debt collection companies to assist them in collecting outstanding tax debts. I was wondering how I would know if a private debt collector was calling or if it was someone trying to get my personal information.
Answer:
You are correct that the IRS has contracted with private collection companies to assist them in collecting outstanding tax liabilities from taxpayers. There are very specific types of cases that are actually assigned to these private collection agencies. The problem is, privacy laws prevent the private collection companies from immediately informing the person who answers the telephone the reason for the telephone call. Instead, the private collectors inform the person who answers the telephone that they are calling regarding a “private business matter” and would require that person to provide personal identification information before actually informing them that they are calling to collect income taxes. I know most people would definitely not be willing to provide their personal information to someone on the telephone much less if they have not been informed who is calling or the reason for the call. This leads to the private collection companies mistreating the taxpayers by continuously calling and harassing them. If you are being harassed by the private collection companies regarding outstanding taxes, please call me to see how I can help you. Your initial consultation is always free and you are under no obligation.