The IRS Debt Collection Scam
The IRS is going back to the private debt collector model. They are turning to debt collectors to speed up the collection process. There are a couple of things that you need to know. First, the private debt collectors industry is the most complained about industry in the country. More complaints are filed to the Federal Trade Commission year in and year out.
The difference between debt collectors using tactics with consumer debt versus tax debt is that most of the threats that are used for consumer debt are just that – threats. They can’t garnish wages. They can’t put a lien on your house. That can’t seize bank accounts. However, with IRS debt they can do all of those things. So, imagine getting threatened knowing the IRS can back it up. Taking you to jail for a tax debt. For the average debt and the processes afforded the taxpayer, jail is unlikely. Bottom line look to private debt collectors to use harassment and threats to collect IRS debt. As I said, the worst part about is the fact that the IRS is afforded those powers.
Second, the scammers will have a field day. Impostors posing as debt collectors will wreak havoc on consumers pretending to collect IRS debt. There is an easy way to know if the phone call is legit. You would have already received numerous letters from the IRS warning that this was going to happen. You should never be surprised. If you owe it, they will be in contact by mail. It is always by mail and never by phone. The problem with this scam is that when a person hears IRS debt and you owe and you’re in trouble, the thinking part of their brain turns off.
Just remember this is if you are in tax debt. The IRS has an unwarranted reputation for treating people badly. They want to work with you. I have heard stories of a kinder IRS in recent years. There are processes and laws passed to protect taxpayers in every situation. The problem is that taxpayers just don’t know about them. Dan Pilla is the authority on these processes. He has written many books on how to utilize the law to help with the IRS. For more information go to www.taxhelponline.com.