IRS to Use Private Debt Collectors

Under the new five year infrastructure spending bill recently signed into law, the IRS is now required to use private debt collection firms in certain situation.  These include situations where the IRS cannot locate the taxpayer, older cases where no IRS employee has been assigned to collect the debt, and in situations where an IRS employee has been assigned, but no action has been taken for more than one year.  In other situations, however, the IRS is not allowed to use private debt collectors. These include situations involving innocent spouses, where the taxpayer is in a combat zone, and where the taxpayer has filed an appeal.  Some concerns have arisen about the safety of taxpayer data in private hands.


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