IRS is expanding the use of private collection agencies to collect tax debt. If you are among the 1 in 15 adults who owes tax debt then there are specific steps that you should take to protect your money and your privacy.
1. You have rights. But it is up to you to know those rights and to exercise those taxpayer rights.
2. You have the right to be represented by a tax professional and not speak with a private collection agency at all.
3. If you do speak with a private collection agency you should understand the entire process and have a plan before speaking with any debt collector.
4. Being unprepared may lead to bad results. These debt collectors are very good at getting what they want, not what’s best for you. The IRS warns taxpayers of possible bad results with fake private collection agencies.