Will The IRS Notify Me Before Sending Me To A Private Collection Agency?

The IRS will notify you before sending you to a private collection agency. The IRS will first send letters asking you to pay your debt. Afterward, they will send a letter saying that your case is being transferred to a private collection agency. You can call them immediately to stop the transfer, or, if you do nothing, you will get a letter from the collection agency assigned to you.

Does The IRS Use Third-Party Debt Collectors Like The credit Card Companies Do?

The IRS does use third-party debt collectors like the credit card companies. Usually, this is only for smaller tax debts like $50,000 and under, but there are three or four, if they have been approved by the government to collect debts, and they use the techniques that are used on other type of debtors.

What Happens If The IRS Does Send You To A Private Collection Agency?

If the IRS sends you to a private collection agency, they will contact you first by letter. They will inform you on the amount that you owe. When a client comes in with that type of a letter, I immediately notify them to send the case back to the IRS. I much rather deal with the IRS than with a collection agency. They only have two or three methods to use for collection, and they do not have as much leeway as a collection officer with the IRS.

Can I Delay A Collection With The IRS?

Sometimes you can delay a collection with the IRS, but not usually for more than 60, maybe 90 days. If you get the collection letter, call the IRS, and tell them that you are gathering financial information, but for whatever reason you come up with, it will take you 30 to 60 days to get it to them, they will usually put a hold on your file for at least 60 days.

Is There A One-Time Tax Forgiveness?

Unfortunately, there is no one-time tax forgiveness. This is something that I hear people ask all the time. They have heard from one source or another that they can get a one-time forgiveness. Many people think that’s what the fresh start program is about, but it is not, and there is no one-time forgiveness of debt.

Will My IRS Debt be Forgiven After 10 years?

In general, it is true that your IRS debt can be written off after 10 years. However, the 10 years begins to run when you file your return. For instance, if you have a 2015 tax return that you did not file until 2018, the 10 years would start running in 2018. There are also several factors that can stop that time from running for a period, such as a bankruptcy. The statute will stop running as long as the taxpayer is in bankruptcy.

Is An Installment Agreement Always Accepted By The IRS?

An installment agreement is not always accepted by the IRS. Many people ask for installment agreements without putting the data needed behind that request. The IRS will grant an installment agreement based on your financial situation as outlined in the financial documents that you send. If you owe under $50,000 and can pay off the debt within the time left to collect, and you pay it, the IRS will accept that type of agreement without financial verification.

Is There A Minimum Monthly Payment For An IRS Installment Plan?

There is no minimum monthly payment for an IRS installment plan. Some installment agreements for taxpayers can be as low as $25 per month and as high as $3,000 a month. It all depends on how much you owe, how long the IRS has to collect the debt, and what your financial situation looks like.

What Happens If I Miss A Payment Or Default On My Agreement With The IRS?

If you miss a payment, you can call the IRS. They will give you a one-month grace period so that you can start back again the next month. However, if you do not file next year’s tax return, or pay what is due, that is a default on the agreement. You will then have to start again to negotiate an entirely new agreement.

Can I Work With The IRS To Reduce Or Remove Penalties Or Interest In My Installment Agreement?

First, the IRS never forgives interest. The only time they would forgive interest is if they miscalculated an interest charge. As far as penalties go, the IRS sometimes does forgive penalties. It depends on the situation on a case by case basis. However, if you owe more than two years of back taxes, the IRS will not usually grant a penalty waiver.

For more information on IRS And Private Collection Agencies, a free case evaluation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.

Office Location

11 McGee Street
Greenville, SC 29601

Phone: (864) 271-7940
Fax: (864) 370-3413
Toll Free: 1-800-216-1116