Private tax collection companies

[Bird Legs]

set to start work this summer. IRS has announced that it has selected three firms,
the first of approximately 12 firms to be used, to collect unpaid debts owed to the IRS.
One big concern is that private financial information will not be adequately safeguarded.
Taxpayers only protection in regards to this is that the firms are "required" to follow
the Fair Debt Collection Practices Act.

[jainen]

On the plus side

On the plus side, private agencies give up a lot more quickly when it is obvious that the debtor can not afford to pay or has a substantial legal position.

[Armando Beaujolais]

On the minus side, private agencies have more latitude to terrorize debtors. You can bet they'll push the envelope in making people believe they are the IRS and about to seize everything they own.

I don't like the privatization of IRS collections. I know it's the hip business model to outsource everything nowadays, but it's so often shortsighted and done only for the purpose of putting a gold star on next quarter's report. The IRS had problems with collections. Instead of fixing the problems, they dumped them in somebody else's lap. The problems won't go away, they'll just get nastier and more expensive.

[veritas]

I wonder if the collection agents will want payment in rupees?

[taxmandan]

Pvt collection agency

Does anyone have the Reg. # for this use of collection agencies? Early proposals had language that a taxpayer could write a letter to the private collection agency to demand their case be returned to the IRS for collection and the private agency had to stop all efforts and kick it back. It would be good if that still exists in the rules.

Dan

[Bird Legs]

Private Collection Agency

This was approved by a provision in the American Jobs Creation Act of 2004.

[John of PA]

Bad News

This is sad news. For anyone who thinks IRS is bad, wait till you see these guys. The City of Phila. used to use a private colector who ended up in jail. Many taxpayers, first correspondes was a lawsuit to appear in court, sometimes for an issue that was totally a mistake. But this tactice forces a quick settlemnt and quick money for the collector. And one cannot call thier congressman for a private collector. Well just have to wait and see how it unfolds.

[jainen]

I am sure

I am sure this plan, like the other Bush administration efforts to privatize government services, will be a disaster for the taxpayers as a whole, but individual taxpayers will probably do okay if they are well represented.

[veritas]

Yes let's not privatize. I mean let the government do it. They have done so well with the post office and Amtrak and education and welfare and social security and medicare and.......

[John of PA]

OK Veritas

OK Veritas, we will take the collections away from the Government. How about if we give the job to Jeffrey Skilling and Kenneth Lay.

[veritas]

So are you saying because there are a few dishonest people in the private sector there are more honest people in government? You have to be kidding. I just read today in a local paper thet a govermnet employee stole 1.4 million from a small city government. I think my little office could have discovered that in about a month. But no let's let those highly motivated and efficient goverment agencies do everything. As a matter of fact you and I shouldn't be doing tax returns for the public only the goverment should do that.

[veritas]

OK Veritas, we will take the collections away from the Government. How about if we give the job to Jeffrey Skilling and Kenneth Lay.

No why don't we get Robert Hannsen out of jail and let him handle it?

[John of PA]

What I'm saying is....

So are you saying because there are a few dishonest people in the private sector there are more honest people in government? You have to be kidding. I just read today in a local paper thet a govermnet employee stole 1.4 million from a small city government. I think my little office could have discovered that in about a month. But no let's let those highly motivated and efficient goverment agencies do everything. As a matter of fact you and I shouldn't be doing tax returns for the public only the goverment should do that.

What I'am saying is overall, on a vast majority of cases, IRS does a good job. If it aint't broke don't fix it. If a private collector steals your money and does not remit it, your still liable to the government. I think our system is better than we give it credit for.