Vince Nardone: Tax and Controversy

IRS Cans Private Collectors of Federal Tax Liabilities

IRS has announced that after an extensive review of the private debt collection program, including its cost effectiveness, IRS will not renew its contracts with two private debt collection agencies.  See the news release attached below in IR 2009-19.  This is great news for taxpayers.  Although I recognize that some taxpayers may have horror stories to tell about dealing with an IRS revenue officer.  In most instances, they are very professional.  Now, that does not mean they are going to give the taxpayer a break, but they generally do a good job of looking at the collection alternatives.  I would certainly rather work with the IRS then some private company or attorney.  

The whole idea of having some private debt collector collect for the IRS has always left a bad taste in my mouth.  I practice in Ohio and the Ohio Department of Taxation and the Ohio Attorney General's Office contracts with third party attorneys, who simply actas debt collectors and they financially benefit from each transaction that they collect on.  The is certainly a conflict of interest.  In addition, many of the attorneys, also called special counsel, have a certain political affiliation (i.e., same as the Ohio Attorney General), which never mixes well with legal work.  All and all, it is a very poor system in Ohio when it comes to collection work.  Thus, I am happy that the IRS has canned the idea for now and will not follow in Ohio's footsteps.  

The bad news, however, that came out of the news release is that the IRS intends to hire another 1,000 revenue officers in the next year.  See the attached notice from the IRS. 

Download Debt Collection - No more private

IRS Cans Private Collectors of Federal Tax Liabilities

IRS has announced that after an extensive review of the private debt collection program, including its cost effectiveness, IRS will not renew its contracts with two private debt collection agencies.  See the news release attached below in IR 2009-19.  This is great news for taxpayers.  Although I recognize that some taxpayers may have horror stories to tell about dealing with an IRS revenue officer.  In most instances, they are very professional.  Now, that does not mean they are going to give the taxpayer a break, but they generally do a good job of looking at the collection alternatives.  I would certainly rather work with the IRS then some private company or attorney.  

The whole idea of having some private debt collector collect for the IRS has always left a bad taste in my mouth.  I practice in Ohio and the Ohio Department of Taxation and the Ohio Attorney General's Office contracts with third party attorneys, who simply actas debt collectors and they financially benefit from each transaction that they collect on.  The is certainly a conflict of interest.  In addition, many of the attorneys, also called special counsel, have a certain political affiliation (i.e., same as the Ohio Attorney General), which never mixes well with legal work.  All and all, it is a very poor system in Ohio when it comes to collection work.  Thus, I am happy that the IRS has canned the idea for now and will not follow in Ohio's footsteps.  

The bad news, however, that came out of the news release is that the IRS intends to hire another 1,000 revenue officers in the next year.  See the attached notice from the IRS. 

Download Debt Collection - No more private