IRS Subcontracting Collections of Past Due Taxes
The IRS began subcontracting collections of past due taxes to third-party private debt collectors in 2017. These collection agencies have been able to set up payments with about 4,100 delinquent taxpayers. Most of these taxpayers qualified for deferred payment statuses. Based on a report from the National Taxpayer Advocate Service, 28% of the funds that the agencies were able to collect were from taxpayers earning less than $20,000 a year. 19% of those consumers are below poverty level. A whopping 44% of the consumers that these third-party collection agencies are collecting from were 250% below the poverty level.
Collection Efforts Focused on Low-Income Taxpayers
That is by far the biggest disgrace I have seen in IRS Collection efforts in many years. Years ago, I met a man; he was 84 years old, he earned $684.00 a month in Social Security Income and owed the IRS $11,000.00. The IRS was garnishing him for 15% of his meager income. To me, that is a huge shame for the American Government. You have a man that has worked 50 years, paid his taxes. He was only getting $684.00 a month and the IRS was garnishing him. Read the report for yourself; it’s a blog by the National Taxpayer Advocate with multiple stories.
Private Debt Collectors Prey on the Lowest Income
We have thousands of consumers that owe the IRS tens of thousands, even hundreds of thousands and in some cases millions of dollars that the IRS is not garnishing. Last year the IRS empowered private debt collectors to prey on the lowest income to collect past due taxes. That should be headline news and the people that made the decision should be booted from office or position.
IRS is Levying and Garnishing Low Income
The IRS is levying and garnishing consumers of low income and or collecting Social Security checks because it is easy for them to do. A Social Security check is issued by the United States Department of Treasury, and that’s who you owe money to if you have past due tax debt. Sadly, most of these people are barely making ends meet, have worked hard their entire lives, cashed out some retirement funds and forgot to take out proper taxes or misunderstood their tax returns and filed improperly. These are not criminals. They are not people that tried to cheat our government. These are hard-working taxpayers that paid into the IRS for 35 to 40 years and now have a that they cannot afford to repay. These third-party collectors instead of going after the consumers still working, making over $50,000 a year and owing tens of thousands of dollars are going after our poor.
I do not think that our previous presidents and lawmakers had this in mind when building the tax code over the years. If you or someone you know if being garnished, afraid of being garnished, owes the IRS and cannot afford to repay what you owe Contact Us and we will speak to you free of charge to see what options are available to you. You can also call us at 561-293-3135 or email firstname.lastname@example.org.
National Taxpayer Advocate
When we reviewed the report issued by the National Taxpayer Advocate most of the cases assigned to these third-party collection agencies are low-income consumers. It is more than evident that these third-party collectors are forcing and possibly even scaring low-income consumers into making payments that they cannot afford to make. The majority are going to default on their payment plans or must give up and live with family, collect food stamps and rely on state and government programs to survive, that makes absolutely no sense. There are better options.
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