${site.data.firmName}${SEMFirmNameAlt}
Call Us At:
301-637-8130

IRS to hire private tax debt collectors for delinquent accounts

The IRS is hoping that the third time's the charm with private tax debt collection. Beginning in early 2017, private companies will be hired to pursue old, delinquent, outstanding accounts that the IRS doesn't have time to do itself. 

Private collection of IRS tax debt has been attempted twice in the past, with marginal success. The first time was in 1996 and yielded $3 million in a little over a year - with a cost of $1 million. The second attempt was from 2006 to 2009 and accumulated $98 million at a cost of $47 million. Currently 19 million people owe more than $400 billion in tax debt to the IRS. 

As the IRS launches this new partnership with private collectors, there are some things you might need to know if you have delinquent tax debt.

  • The names of private collection companies will be public - The IRS plans to select partners within the next couple months and publish the list of official collection companies on irs.gov. The IRS will also notify taxpayers who have been assigned to a private collector by mail.
  • Private debt collectors will go after old, outstanding accounts only - These companies will pursue accounts that have more than one-third of the 10-year statute of limitations expired, have no IRS employee assigned to collect the debt, the debtor hasn't been contacted in a year and the debtor hasn't requested a payment alternative or relief program.
  • Collectors will look for "missing" taxpayers - Part of the job of the private companies will be to track down debtors who the IRS cannot locate. They do so with respect to taxpayers' rights, information and privacy.
  • The private tax debt collectors will not have enforcement authority - Unlike the IRS, these companies will not be able to file liens or issue levies - or have them removed. 

As with any issue regarding back taxes, you are entitled to seek legal representation if you have a pending case assigned to a private debt collector.

No Comments

Leave a comment
Comment Information

Firm news & Events

Friday, November 18, 2016

Chaya Kundra will be a panelist at the New England IRS Representation Conference on Preparer Penalties.

Preparer Penalties: Everything You Need to Know! Over time the IRS has increased its focus from individual taxpayers to tax preparers. When the IRS identifies a pattern of false or fraudulent returns, it does not hesitate to impose penalties on the return preparers. This panel will walk you through the various penalties and what preparers need to know to protect themselves.

Moderator: Amanda Evans, Green & Sklarz LLC, New Haven, CT

Panelists: Chaya Kundra, Kundra & Associates, Rockville, MD, Barbara Kaplan, Greenburg Traurig, New York, NY

News

Contact the Tax Lawyers at Kundra & Associates

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Get In Touch
  • Best Law Firms U.S. News 2014
  • Best Law Firms U.S. News 2015
  • Best Law Firms U.S. News 2016
  • Best Law Firms U.S. News 2017
  • fortune leading women in the law 2013 & 2014
  • Super Lawyer
  • Best Lawyers 2013, 2014,2015 and 2016
  • Global Law  Experts | 2016 | Annual Awards Winner

Rockville Office
110 North Washington Street
Suite 406
Rockville, MD 20850

Phone: 301-637-8130
Fax: 301-424-7047
Map & Directions

Washington, D.C. Office
1025 Connecticut Ave NW (By Appt only)
Suite 1000
Washington, DC 20036

Phone: 301-637-8130
Fax: 301-424-7047
Map & Directions

Kundra & Associates, PC
C/o Anmol Sekhir Consultants Pvt. Ltd. Chartered Accountants
3rd Floor, Sahakar Bazar
Opposite Railway Station
Bandra (West), Mumbai 400 050

Phone: 301-637-8130
Fax: 301-424-7047
Map & Directions