Show Me Your Money

The Internal Revenue Service is moving forward in its efforts to place delinquent taxpayers with collection agencies in accordance with the American Jobs Act of 2004.  Three firms have been selected to put on the face of your friendly neighborhood tax collector:  The CBE Group Inc., Waterloo, Iowa; Linebarger Goggan Blair & Sampson, LL, Austin, Texas; and Pioneer Credit Recovery, Inc., Arcade, New York.  33 firms competed for the prize.  Their work in collecting unpaid taxes was scheduled to start this summer.

The collection process begins when a taxpayer’s case is assigned to one of these agencies at which time he or she will be notified by both the IRS and the collection agency.  Notification will explain the workings of the collection process and the rights of the taxpayers. 

Persuading delinquent taxpayers to pay up could prove difficult.  These firms cannot take enforcement action which includes liens, seizures or levies.  They cannot threaten or intimidate.  Nor can they compromise amounts owed.  These powers are reserved for IRS.  One therefore wonders why the government’s tax enforcement Service requires the help of collections agencies it has deliberately defanged?  IRS claims that these agencies will help reduce a growing number of uncollected tax liabilities.

In an effort to reassure taxpayers that no brutes will show up at their doors threatening massive injuries, IRS states:   'Any person working on a contract or having access to confidential tax information will be subject to a background investigation appropriate to the risk designation of their positions. . . .  Firms will conduct preliminary reviews of each job applicant for criminal activity or poor credit.  Applicants must be in full compliance     with federal tax laws and subject to FBI fingerprint screening.  All employees performing collection services for IRS must secure photo         identification, and be subjected to employment, education and address verification.  Work must be performed by U.S. citizens or permanent resident aliens.

What is interesting is that “all work will be performed within the United States; no data transmission outside the U.S. for any reason.”  This ruling appears to suggest that delinquent American expatriates are exempt from the reach of collection agencies; another reason for staying abroad.