PRIVATE DEBT-COLLECTION FIRMS

This coming Monday, on September 11 the IRS will issue "Internal Revenue Bulletin 2006-37,"

which will summarize the IRS’s use of three private collection agencies (PCAs) to collect past-due tax debts of private citizens. 

(For Tax Pros: Code Section 6306 sets the limits on the role of PCAs.)

But 4 days BEFORE that (on this coming Thursday, Sept. 7th) some 12,500 taxpayer accounts will be assigned to the three PCAs.  That number will reach about 40,000 by the end of 2006.

Congress is not happy about this!  House Members on both sides of the aisle insist that it would cost far less to hire new IRS employees to go after the debt, so the House version of a new Tax Bill specifically forbids the IRS from spending any budgeted funds on private collection agencies.

But the Senate version of that Bill does not contain that language, so House-Senate conferees will have to iron out the difference.  While the House and Senate conferees are doing their compromise work, what’s the IRS going to do? 

Can you believe this?!?!

IRS plans to ignore the 435 Members of Congress and quickly launch the collection program before a House-Senate Conference has time to complete a compromise.

AND ALSO…

            "WATCH OUT FOR DEBT-COLLECTION SCAMS"!

"Don’t be fooled by scam artists claiming to be from the IRS" or from IRS-hired debt collection firms, says Kevin M. Brown, IRS Commissioner of the Small Business / Self-Employed Division.

If your name is assigned to the private collection Program, you will be notified IN ADVANCE by the IRS.  So if you are contacted by a "PCA," but you haven’t been notified by the IRS, you should assume they are scammers.  Call the agency’s toll-free line at 800-829-1040.

Some scammers have recently been contacting taxpayers, claiming to be from the IRS (and with "official looking" emails and email addresses), claiming you have a refund coming.  ANY email that asks you for personal information, PIN numbers, Social Security numbers, etc. are NOT from the IRS.

Think about it — doesn’t the IRS already have everything personal about you?  If you get scam emails, notify the IRS at 800-829-1040.

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