If you owe money in taxes to the Internal Revenue Service (IRS), you already know that the government can come after you for payment of your taxes. The IRS has its own collection team, and they have many tax enforcement methods they will utilize to collect your tax liability.
They can file a federal tax lien against you or garnish your wages. They can also levy your bank accounts and seize your personal property. They can take your home, vehicles, and other types of property, and they aren’t afraid to use these tax liability collection measures.
As if it weren’t bad enough to have the IRS after you, you might also have a private tax liability collector after you as well. That’s because the IRS now sends some taxpayers’ liability to private liability collectors in an attempt to get back taxes paid.
When Will the IRS Send Your Tax Liability to a Private Liability Collector?
In December 2015, Congress passed a law allowing a few private liability collectors to work on accounts with past-due tax liability. The private collection agencies that are currently authorized to collect tax liability include:
Be vigilant about tax liability collection scams. There are many scams that exist in which people pose as tax liability collectors in an effort to get your money and personal information. If you have questions about private liability collectors, contact the IRS.
Not every past-due account will be sent to a private liability collector. For instance, if you have an active installment agreement, your account will not be transferred. If you are in a combat zone, under the age of eighteen, or you have a pending offer in compromise, your account will not be transferred. There are others who are excluded from account transfer, as well.
Things to Know about Private Liability Collectors for Tax Liability
A few things to note about private liability collection agencies that are working on tax liability accounts:
- The liability collectors must respect your taxpayer rights.
- The liability collectors can inform you that they are contractors working for the IRS.
- These accounts will be generally older, overdue accounts that the IRS is no longer working on due to a lack of resources.
- These agencies must abide by the Fair Liability Collection Practices Act.
- Your payments will be made directly to the IRS and not to the private liability collection agency.
How to Tell if Your Account Has Been Assigned to a Third-Party Collector
The IRS will send you a notice if your account is assigned to a third-party collector. Generally, the agency sends out Notices CP40 or CP140. However, if you have moved, you may have missed the notice. Create an online IRS account or call the agency directly if you aren’t sure what’s happening with your tax debt.
Speak with a Tax Liability Attorney Now
Being inliabilityed to the IRS is not a fun situation to be in, but it’s important that you understand your rights. It’s usually best to face tax issues and handle them directly. Just because private liability collectors are now authorized to work on overdue accounts doesn’t mean you can’t resolve your tax liability.
A tax lawyer can assist you in getting your tax situation straightened out for good. Contact The W Tax Group to discuss your options for dealing with tax issues. Call 877-500-4930 or fill out the online contact form to receive a free tax liability assessment.