The IRS Private Debt Collection Program is a new program that the IRS has put into effect to try and collect overdue taxes from taxpayers. This program has been in the works for a while, and it finally went into effect in April of 2017. So what does this mean for taxpayers? In this post, we will discuss the details of the IRS Private Debt Collection Program. We will be including who is eligible, what services are offered, and more!
What Is The IRS Private Debt Collection Program?
The IRS Private Debt Collection Program is a new program that allows private debt collectors to collect overdue taxes from taxpayers. The program was created to help the IRS collect more money from taxpayers who owe overdue taxes. Under the program, private debt collectors will be able to contact taxpayers who owe overdue taxes and try to collect the money owed.
How Does It Work?
- The IRS Private Debt Collection Program is designed to help the IRS collect overdue taxes from taxpayers. Under the program, private debt collectors will be able to contact taxpayers who owe overdue taxes and try to collect the money owed.
- The private debt collectors will work on behalf of the IRS and will receive a commission for any money they can collect from taxpayers. The IRS will provide the private debt collectors with a list of taxpayers who owe overdue taxes, and the private debt collectors will then attempt to contact the taxpayers and collect the money owed.
- If the private debt collectors are successful in collecting the money owed, they will receive a commission from the IRS. The commission will be based on a percentage of the money collected, and the amount of the commission will be disclosed to the taxpayer before collection.
- The IRS Private Debt Collection Program is intended to help the IRS collect overdue taxes, and taxpayers need to understand how the program works before they agree to participate.
Who Is Eligible For The Program?
Taxpayers who meet these criteria will be notified by the IRS if they are selected for the program.
- To be eligible for the program, taxpayers must owe an outstanding debt of more than $10,000 that is at least 180 days past due.
- The debt must also not be currently under review by the IRS or in active collections through another method.
- In addition, the taxpayer must not be currently participating in another payment plan or have an offer in compromise pending.
What Services Are Offered?
The Services offered by the IRS Private Debt Collection Program are as follows:
#1 Accounts Receivable Management
- The account receivable management services help the IRS with revenue collections and improving cash flow. The service providers also develop aged receivables reports and establish dunning procedures to contact delinquent taxpayers.
- These services are essential in ensuring that the IRS can collect the revenue it is owed, and they help to improve the overall efficiency of the organization.
- The account receivable management services help the IRS to save money and resources, and they make it easier for taxpayers to pay their taxes on time. These services are a valuable asset to the IRS. They help to ensure that the agency can meet its revenue goals.
#2 Business Process Outsourcing
- Business process outsourcing services can help the IRS automate manual processes and workflows associated with tax collections. This can improve the agency’s efficiency and effectiveness while reducing costs.
- In addition, business process outsourcing services can help the IRS improve its customer service by providing access to skilled customer service representatives who can answer taxpayer questions and handle inquiries.
- Business process outsourcing services can also help the IRS improve its web presence by providing website design and development services. By using a business process outsourcing service, the IRS can improve its operations and reduce its costs.
#3 Compliance Consulting
- The IRS Compliance Consulting Services (CCS) provides confidential, independent, and objective advice to the IRS on compliance strategies. They also provide advice how to implement policies and procedures to ensure that taxpayers are complying with the tax laws.
- CCS also assists the IRS in identifying areas where improvements can be made to increase compliance. In addition, CCS provides training and education to IRS employees on compliance-related topics.
- The goal of CCS is to help the IRS improve its compliance posture and ultimately increase voluntary compliance with the tax laws.
Should You Participate In The Program?
- The decision to participate in the program is up to the taxpayer.
- If you are selected for the program, you will be notified by the IRS and given the option to participate. If you decide to participate, you will be required to sign a participation agreement with the private debt collector.
- It is important to note that participating in the program may hurt your credit score. Additionally, if you are unable to pay the amount owed, the private debt collector may take legal action against you.
- It is important to speak with a tax professional to discuss your options. Then you can determine what is best for your situation.
Pros Of IRS Private Debt Collection Program
- The program offers many services that can help taxpayers who owe overdue taxes.
- Private debt collectors may be able to collect more money from taxpayers than the IRS could on its own.
- The program can help the IRS collect more money overall, which can be used to fund other programs and services.
Cons Of IRS Private Debt Collection Program
- Private debt collectors may use aggressive tactics to try and collect money from taxpayers.
- Taxpayers who are struggling to pay their taxes may find it difficult to make payments to a private debt collector.
- The fees charged by private debt collectors may be higher than what the taxpayer would owe if they paid their taxes directly to the IRS.
Conclusion
The IRS Private Debt Collection Program is a new program that allows private debt collectors to collect overdue taxes from taxpayers. The program was created to help the IRS collect more money from taxpayers who owe overdue taxes. While it is still early, the results of the program seem promising and are likely to improve as the program matures. If you have any overdue taxes, it is important to take action now and avoid becoming part of this program. Thanks for reading!
