Tax Tip of the Week | No. 384 | New Private Debt Collection Program to Begin Next Spring

Tax Tip of the Week | December 7, 2016 | No. 384 | New Private Debt Collection Program to Begin Next Spring

Next spring, the IRS will begin to use private collection of certain overdue federal taxes and has selected four agencies. As a condition of receiving a contract, these agencies must respect taxpayer rights and abide by certain consumer protection provisions.The IRS will give each taxpayer and their representative written notice that their account is being transferred to a private collection agency. The agency will then send a second, separate letter to the taxpayer and their representative confirming this transfer.The IRS will do everything it can to help taxpayers avoid confusion and understand their rights and tax responsibilities, particularly in light of continual phone scams where callers impersonate IRS agents and request immediate payment.Private collection agencies will not ask for payment on a prepaid debit card. Taxpayers will be informed about electronic payment options for taxpayers on IRS.gov. Payments by check should be made payable to the U.S. Treasury and sent directly to the IRS, not the private collection agency.You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.Rick Prewitt – the guy behind TTW...until next week.