Due to a law passed by the United States Congress in 2015, the Internal Revenue Service must hire third party tax debt collection firms when they have unpaid taxpayer tax accounts that are not being worked on by the IRS collection group. These private collection companies are hired to either create tax payment plan with the taxpayer, or to gather financial information of the taxpayer to assist with collection activities (levies, liens, etc.). The payment plan through a private vendor would be similar to the payment plans that the IRS enters into, and as such would either be tailored to the financial issues facing the taxpayer, or be a payment that is spread over a certain term, such as a sixty or eighty four months’ time period.
The inactive tax accounts subject to these rules include taxpayer accounts that have 1) been removed from active IRS collection inventory (for instance, they cannot locate the taxpayer), 2) where there is no IRS employee assigned to the collection case, or 3) at least one year has passed since the IRS collection group obtained the case, and it was not assigned to a revenue officer or other field collection person (for cases over $250,000).
If you have filed an offer in compromise, or some other collection alternative, your account will not be transferred to a third-party collection firm. Therefore, innocent spouse claims, deceased taxpayers’ debts, or cases that are being litigated or part of an exam, will be excluded from these rules, and only be subject to the normal IRS collection rules.