Have an IRS Tax Debt? Get Ready for the Collection Agencies

Have an IRS Tax Debt?

by Harry Galstian

May 19, 2016

We’ve already discussed the controversial IRS passport law that was sneaked into last winter’s highway bill, but that wasn’t the only thing pushed through. The bill also included authorization for the use of outside collection agencies to target IRS tax debt.

So what will this mean to those in debt to the IRS?

The Harassment Will Be Elevated

Gone are the days of IRS notices in the mail.

If you’ve ever gotten behind on a credit card or car loan payment, you absolutely know the lengths to which debt collection agencies will go to collect your debt. Plan for lots of calls, emails, and harassing letters. Debt collection agencies are even permitted to call your work (unless you tell them not to) and your friends and family if they are trying to locate you. That sort of contact is probably not the type of exposure you’re looking for, and it’s not something any of us previously had to worry about.

The IRS Response Will Be Faster

Because of job cuts over the last few years, the IRS has been slower to respond when taxes have gone unpaid. This doesn’t mean they haven’t noticed, and it doesn’t mean anyone’s debt has been wiped out, but the IRS response has typically taken some time.

That is about to change.

These debt agencies are funded through commissions on collected debts. Because of this, they are much more motivated to get your IRS tax debt paid. After all, the collection of your debt keeps them in business. And if you’re familiar with these agencies, you know they will go to great lengths to make that payment happen.

Identity Theft Still Won’t Be Addressed

We’ve all heard of the recent IRS identity theft scandals (and if you haven’t, check this out), and tax scams are also on the rise. These new collection agencies do nothing to combat either of these problems. In fact, many believe that involving a third party may only compound these problems. Either way, while involving debt agencies may increase federal funds, it will do little to protect taxpayers.

The Clock Is Ticking on Your IRS Tax Debt

Do you owe more than $10,000 in back taxes in your state or federal income? Contact Direct Tax Relief and learn about the IRS tax relief programs, including IRS payment programs and the Corona Virus Tax Relief.

Give Direct Tax Relief a call at 1-800-505-4134.


  • https://www.consumer.ftc.gov/articles/debt-collection-faqs
  • http://www.acainternational.org/
  • http://www.accountingtoday.com/news/tax-practice/saying-no-to-outside-agencies-in-tax-collections-77965-1.html