GOP Pushes for IRS Tax Debts to Be Outsourced to Private Debt Collectors

One of the challenges the United States government has encountered is unpaid tax bills. The more Americans who fail to stay current on their taxes, the more difficult it becomes for the federal government to make the budget balance. To help recoup the lost tax revenue, some members of the GOP are pushing to have private debt collectors take over the IRS collection efforts.

At first glance, it might seem like a smart idea to hire debt collectors to recoup unpaid tax debt, but what would this really look like for American taxpayers? These collection agencies oftentimes use unscrupulous methods and harass people endlessly until money is recovered. In past years, many collection agencies have faced legal recourse for their bullying tactics so why should the US government entrust IRS collections to these same companies? The idea of giving them even more power is enough to make most people shudder. If collection agencies know they’re working for the IRS, some fear it will make the agents even more aggressive than they already are.

Many wonder what good having the private debt collectors working for the IRS will do. While there are some members of the wealthier classes that are guilty of tax evasion, that’s certainly not the normal situation. Many of the people who owe federal back taxes are people who are struggling to get by on a very low income and simply don’t have any extra money to pay their back taxes, especially when you consider the massive interest rates the federal government always attaches to outstanding tax debt. It’s estimated that approximately 79% of the amount of money the government wants to collect is owed by individuals with a painfully low income and no means to pay their bill.

Considering the numbers, representatives of the National Consumer Law Center feel that no good can come out of the current proposal. What’s really alarming is that the bill to privatize the collection of tax debts has already been approved by the Senate. If the House passes the bill, which seems likely, the bill is only one short step away from becoming a law.

No one wants to get stuck in a situation where they owe the IRS money that they can’t afford to pay. Unfortunately, a simple mistake on your tax returns might have originally cost you only a few hundred dollars, but that could quickly add up to a few thousand with interest fees included before you even find out about the mistake. When this happens you should call a tax debt attorney who will work with the IRS to see about getting your interest rate reduced. A qualified tax debt attorney will represent you in negotiations with the IRS and help you reach a settlement without ever spending a single day in Tax Court.

If you owe back taxes to the IRS, don’t let another day pass without dealing with the problem. Visit today and schedule a consultation with a tax debt attorney.

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