IRS Debt Collection: What Will It Look Like in 10 Years?

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Here’s a mind boggling fact: approximately 17 percent of IRS taxes go unpaid each year. This figure takes into account IRS cheating as well as delinquency. This lost revenue creates major headaches for the federal government, and policymakers on both sides of the aisle have floated ideas for closing the gap. Over the next decade, we’ll likely see some proposals enacted. What will they look like? How soon will the IRS institute reforms? Most critically, what are the implications for people who owe money to the IRS—now and in the future?

Enter the Private Debt Collectors

Traditionally, the IRS has preferred to use internal collections processes. That’s changing. Recently, the agency has been turning to outside debt collectors to chase down past due accounts. According to reporting from The Consumerist, the IRS generally uses this strategy only after a debt has gone unpaid for over a year or when the agency lacks internal resources to pursue payment. Insiders believe that the IRS could lean more on private collectors in the future.

Legitimate IRS Debt Phone Calls?

IRS phone call scams have proliferated so much—and become so diverse—that they’re almost a punch line at this point. The agency has gone to great lengths to assure taxpayers that it will never place unsolicited calls.

However, it’s not clear whether similar rules will indeterminately constrain private debt collectors seeking payment on IRS debts. For now, though, remain on high alert for potential IRS telephone scams, and report calls to authorities.

Fluid Rules for Private Debt Collecting?

Whether they’re going after IRS debt or other moneys owed, private collectors face legal restrictions. They cannot call early in the morning or at night, make threats, or violate other parts of the Fair Debt Collection Practices Act, for instance. But these rules are not static. Some changes might empower consumers–for example, collection companies may soon be restricted to contacting debtors no more than six times per week. But other changes could make life harder on consumers.

No matter how the process evolves, one constant will remain: the stress/anxiety created by IRS debt collection. You can depend on the consultants at Highland Tax Resolution to restore your peace of mind. Call us today at 720-398-6088 to get your payment situation under control.