Douglas Tax Blog. U.S.A.
The private tax collectors that the current Congress has let loose on the American public are using illegal tactics, again. It seems that history is quickly forgotten. For it was under President George W. Bush, Jr., that we saw the exact same thing. Back then they thought it was a good idea to use private tax collectors, and then the taxpayer bill of rights were trampled, resulting in litigation, and eventual dissolution of the private tax collection idea.
This current idea started back in 2015, and recently the New York Times reported that Pioneer Credit Recovery had suggested to individuals it was contacting to use credit card debt, get employer loans, and even go into 401 (k) accounts, to pay their debt.The tactics were obviously in violation of the taxpayer bill of rights. If history is any indication the next thing we should be looking out for is litigation against these illegal tactics, and a sobering reminder of why they were abandoned many years ago.
The other portion that is illegal is that the private tax collectors must also adhere to the fair debt collection act. The New York Times article discusses many abuses of this act, and makes clear that violations are happening and most likely will continue to happen, as no checks seem to be made on these private tax collectors. Taxpayers need to be aware of the rights they have under law, so if they are contacted by one of these agencies they may know when that agency is in violation of the law.
Private tax collectors are not supposed to call and demand immediate payment asking for a Credit or Debit Card. The taxpayer should first receive a letter from the IRS. Threaten to bring in any law enforcement groups or have the taxpayer arrested. Demand the taxes be paid, without the taxpayer having the right to appeal the decision or the amount of taxes in question. If you feel your rights are violated and you need tax resolution services, call us at 1-888-689-7861.