In order to collect on back taxes, the IRS hires third party debt collectors. In the past, debt collection companies that were hired by the IRS were notorious for not following the law when collecting back taxes. Taxpayer rights had been violated with threats of judgments, liens and jail time.

The IRS still uses collection agencies to collect back taxes, but these days, debt collection companies are more strictly monitored. Notices that are sent to taxpayers who owe money detail the entire process of collection and what the IRS can and can’t do in order to collect on the debt. The notice also states that debt collectors legally cannot threaten taxpayers with judgments, tax liens or jail time. The worst thing they can do is call taxpayers regularly to remind them of the debt, as well as send letters demanding payment.

It is imperative that you contact the IRS immediately to discuss payment options before your bill ends up in collections. If you have already been contacted by an IRS hired collection agency, and they have harassed or threatened you, you should call the taxpayer advocate office right away. If you are concerned about your rights in the collection process, you can also seek the advice of a tax professional or even a tax attorney. You have the right to legal representation.

Daniel Stoica Accounting Professional