IRS to Start Using Private Collection Agencies

IRS to Start Using Private Collection Agencies

JBL Accounting & Tax Professionals want to inform the public, that starting in April of 2017 the Internal Revenue Service will start using private collection agencies to collect overdue tax accounts.  They will assign taxpayers who have overdue federal tax accounts to one of four private-sector collection agencies.

But don’t worry, not just anyone who has past due taxes will be sent to a collection agency.  The IRS states the individuals who will be sent to collections are cases that are not currently being worked by the IRS collection employees.  IRS Commissioner John Koskinen states, “The IRS is taking steps throughout this effort to ensure that the private collection firms work responsibly and respect taxpayer rights.

The biggest concern with this new program is the increase of Scams.  In recent years there have been excessive phone scams where an individual is called and threatened that if they do not pay their past taxes a police officer will be there to arrest them.   Koskinen is also warning individuals that “The IRS also urges taxpayers to be on the lookout for scammers who might use this program as a cover to trick people.”

The IRS states with this new program, they will be notifying individuals who will be assigned to a collection agency and will begin receiving mailings and subsequent phone calls.  The IRS says that individuals will always receive multiple contacts, letters and phone calls, first from the IRS, not private collectors before they are transferred to a collection agency.

I believe the concern of people will be that over the years, the IRS has always stated that the IRS does not make phone calls to collect a debt and if you receive one of these calls, it is a scam.  What now are the people to do, who do not realize they owe a debt to the IRS to think?  The risk of people who do not know they owe a debt, and may ignore these phone calls or letter believing it is a scam, may now be sent to a collection agency and severely damage their credit score.

Most individuals know if they owe the IRS, but in the event you don’t know, now would be a great time to contact the IRS and make sure you’re not on this list.  For more information on this new program , click here.

Here is a list of IRS hotlines if you are looking for telephone assistance:

  • Tax Help Line for Individuals: 800-829-1040
  • Tax Help Line for Businesses: 800-829-4933
  • Special Hotline for U.S. Military (Disaster or Combat Zone): 866-562-5227
  • Telephone Assistance for Overseas Taxpayers: 267-941-1000 (not toll-free)
  • Telephone Assistance for the Deaf (TDD): 800-829-4059

 

JBL Accounting & Tax Professionals is a full service accountant in Harrison, Tennessee. We offer a full range of professional accounting, payroll and tax services to the entire Chattanooga, Tennessee and Northern Georgia areas including, Harrison, Hamilton County, Ootlewah, Fort Oglethorpe, and Ringgold areas.

Contact us today to see how we can help you!

(615) 392-0522

Advertisements

Tax Return Extensions

2017 Tax Return Extension DeadlineIf for some reason you are unable to file your personal tax return by this year’s deadline of April 18, 2017, JBL Accounting and Tax Professionals wants to remind you that you have to option to file a tax return extension.  By filing an extension, you will gain an automatic six (6) months to gather, prepare and file your federal income tax return with the IRS.  Instead of an April 18, 2017 date to file your federal income tax return, if you file an extension, you will have until October 16, 2017 to file your tax return.

There are a few things you will need to file an extension.  You will need to estimate your tax liability and pay any about that you predict you may owe when you file your extension.  The simplest way to do this is to utilize a tax accountant who will make sure all of your information is filed properly and you are estimating your potential tax liability accurately.

Individuals who pay as much as they can by the April 18, 2017 extension due date significantly reduce the overall amount they may be subject to with penalties and interest charges.  The late filing penalty is generally five percent (5%) per month and the late payment penalty is normally 0.5% per month.  It is better to file a federal tax return extension and pay the estimated tax liability up front, then deal with the penalties and interest charges you would be fast with by filing late without an extension.

For additional information, contact JBL Accounting and Tax Professionals, Inc.  We will be happy to assist you with all of your tax questions and needs.

JBL Accounting & Tax Professionals is based in Harrison, Tennessee. We offer a full range of professional accounting, payroll and tax services to the entire Chattanooga Tennessee area including, Hamilton County, Ootlewah, Chattanooga, Fort Oglethorpe GA, and Ringgold GA areas..

Contact us today to see how we can help you!

(615) 392-0522

IRS Reminds Seniors to Remain Alert to Phone Scams during Tax Season

Unfortunately, during tax season scam artists like to take advantage of our seniors and try to threaten and coerce them by pretending to be and IRS Agent or an employee of the IRS, but they are not.  These phone scammers only want your tax return money, your savings, and maybe even your identity.  Do not fall for this scam.

These con-artists usually call people with an altered caller ID used to try to convince the recipient of the call they are legitimate agents of the Internal Revenue Service, when in fact they are nothing but criminals trying to scare you into paying money.

Victims of this scam are told they owe money to the IRS and must immediately pay or they will be arrested.  The con-artist will usually tell the victim that they need to pay through a pre-loaded debit card or wire transfer.  This scam is used to pray on people they consider vulnerable and will use threats and coercion to get their money any way they can.  Do not fall for this scam.  The IRS will never contact you via phone.

Another way these criminals try to scam their victims is to tell them they are due a REFUND and will try to trick them into revealing private information.  Do not under any circumstance reveal your private information to anyone over the phone.  The IRS does not work this way.

Read more here on how to protect yourself and learn more about these scams and how to protect yourself, your money and your identity.

JBL Accounting & Tax Professionals is based in Harrison, Tennessee. We offer a full range of professional accounting, payroll and tax services to the entire Chattanooga area including, Hamilton County, Ootlewah, Fort Oglethorpe, Georgia, and Ringgold, Georgia.

Contact us today to see how we can help you!

(615) 392-0522