The agencies will send a second separate letter to the taxpayer and their representative confirming this transfer. The law requires the IRS to use private agencies to collect certain outstanding and inactive tax debts. Remember that the IRS wants to work with you to resolve your tax debt before taking steps such as liens and liens. Ignoring an IRS tax bill is never a good idea, because the notice starts the countdown to IRS collection.
This rule changed recently when the IRS decided to start hiring some of its debt collection jobs to private companies. If you find it difficult to deal with an IRS collection agency, you don't have to put up with them. Only people with specific circumstances will qualify for these options, so it's a good idea to seek the help of a tax professional to understand and analyze your options. There are also options for people who cannot pay any payments, such as the current non-collectible condition, which pauses payments and collection, and the compromise offer, which allows them to settle their tax debt for less than what they owe.
The debt has been allocated for collection, but more than 365 days have elapsed without interaction with the taxpayer in order to encourage the collection of the account receivable. In many cases, people believe that cold calls from collection agencies are scams when in fact they are legitimate calls. If you receive one of these calls but don't want to work with the private debt collector, you can make a written request. But be careful: if the caller asks you to make a bank transfer, charge a prepaid card, or buy gift cards, you're not talking to a government agency.
Second, the fact that a private debt collection company pressures people to pay their tax debt does not seem ethical. If you think you've been harassed, lied to, or the victim of other misconduct, you can report an IRS collection agency for committing a crime. For years, the IRS told taxpayers that only agents working for the IRS would contact them to inform them about their back taxes. You can ask the PCA to transfer your account to the IRS by sending a written request to the PCA.
A licensed and experienced tax professional is prepared to deal with private debt collectors and the IRS. In many situations, the PCA does not need to inform the taxpayer that there are several payment options available through the IRS.
