Does the IRS Have a Collection Agency?
The Internal Revenue Service (IRS) is the primary tax collection agency for the United States government. However, many taxpayers are often curious about whether the IRS has its own collection agency to handle delinquent tax debts. The answer to this question is both yes and no, depending on the context.
Understanding the IRS Collection Process
The IRS has its own collection division, known as the Collection function, which is responsible for enforcing tax collection laws and ensuring that taxpayers pay their taxes in full. This division is part of the IRS and operates under its authority. The Collection function employs a variety of methods to collect taxes, including sending notices, initiating phone calls, and, in some cases, visiting taxpayers’ homes or businesses.
Collaboration with Private Collection Agencies
While the IRS has its own collection division, it also collaborates with private collection agencies to assist in the collection of certain types of tax debts. This collaboration is governed by a program called the Private Debt Collection (PDC) program. Under this program, the IRS contracts with private collection agencies to help collect delinquent tax debts that are more than three years old and have not been previously assigned to the IRS’s own collection division.
Role of Private Collection Agencies
Private collection agencies play a crucial role in the IRS’s collection efforts. They are authorized to contact taxpayers about their delinquent tax debts and can negotiate payment plans or offer other arrangements to help taxpayers resolve their tax obligations. However, it’s important to note that private collection agencies are not allowed to use aggressive or abusive tactics when communicating with taxpayers.
Legal Protections for Taxpayers
The IRS and private collection agencies are bound by strict legal protections for taxpayers. These protections include ensuring that taxpayers are not subjected to harassment or unfair treatment. Taxpayers who believe they are being treated unfairly or who have questions about their tax obligations should contact the IRS directly to resolve any issues.
Conclusion
In conclusion, the IRS does have its own collection division to handle tax debt collection. However, it also collaborates with private collection agencies to assist in the collection of certain types of tax debts. This collaboration aims to ensure that delinquent tax obligations are addressed efficiently and fairly, while also providing taxpayers with the necessary support to resolve their tax issues.
