Last September, the IRS entered into tax collection contracts with third parties for the collection of certain outstanding inactive tax receivables. The year before, in December 2015, the Fixing America’s Surface Transportation (FAST) Act was enacted, which required the IRS to enter into these contracts for generating sufficient revenue to fix public transportation. The passing of this act means if you owe the IRS any tax receivable meeting certain conditions, private debt collection agencies will soon be contacting you this spring in 2017. Inactive tax receivables that will be targeted include the following:
The cases the IRS does not have the resources to take care of will move to four different private debt collection companies, including CBE, ConServe, Performant, Pioneer.
If you are in debt, be aware you are protected by the Fair Debt Collection Practices Act (FDCPA), which requires these four companies to pursue the debt in a courteous and fair manner. If one company violates the terms by harassing you in any way, you have the right to file a complaint with the Consumer Financial Protection Bureau and collect damages or with the Treasury Inspector General for Tax Administration (TIGTA) in your area.
Some accounts won't be transferred to private collection agencies, including the following types of taxpayers:
If you become one of these kinds of taxpayers after your account has been assigned to a private debt collection agency, the agency must return your case back to the IRS.
To avoid private debt collectors this spring, you do have a number of choices. Depending on what kind of debt you have and how substantial it is, you could consolidate your debt, file for bankruptcy, or see if your debt can be discharged. Our experienced debt relief attorney can review your case and make recommendations regarding your best course of action.
LeverLaw is dedicated to not only helping you obtain a sense of financial freedom but also works with you toward true debt relief. Our Long Beach bankruptcy attorney can help you if you experience creditor harassment or need to modify your loans or declare bankruptcy. Our founding attorney has filed thousands of bankruptcy cases over the course of his career and handles both Chapter 7 and Chapter 13 bankruptcy cases. Our skilled attorney offers more than 25 years of legal experience, which he has used to help consumers get out of debt and have a second chance financially.
If you’re worried about the impending private tax debt collection, contact us at (562) 548-7111 or fill out our online form to schedule a free consultation today.