The IRS has contracted with four companies to go after people with lingering federal tax debt. The law was passed in late 2015 to capture some of the $400B in tax debt that eludes the IRS.
Private contractors will be assigned accounts. Those targeted will get a letter in the mail before anyone calls to alert them that their account has been transferred to a private agency.
The collectors will be allowed to identify themselves as IRS contractors. They won’t take money directly but they will lay out options for people to pay the US Treasury by check or electronically.
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