Comments on: IRS is using debt collection agencies http://www.penny-saved.com/2006/09/13/irs-is-using-debt-collection-agencies/ Personal Finance and Wealth by the Penny Tue, 06 Jan 2009 13:48:45 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Brady http://www.penny-saved.com/2006/09/13/irs-is-using-debt-collection-agencies/comment-page-1/#comment-249 Brady Fri, 15 Sep 2006 02:35:53 +0000 http://www.penny-saved.com/2006/09/13/irs-is-using-debt-collection-agencies/#comment-249 This is rather ironic actually since the IRS could collect these debts far easily and more quickly if they had the staffing to do it. Not to mention the fact that it doesn't cost the IRS 25% of the collection amount to haul in deadbeats. The IRS has a lot more at their disposal than those debt collecting agencies have. All they can do is harass people, send them nasty letters, and ruin their credit. The IRS can pull any public record to find tax evaders including many that aren't available to outside agencies. They have a massive staff of lawyers and accountants on hand to scare the hell out of anyone who would contest what they owe and they can file criminal fraud charges against anyone who evades collection in the civil system. I know several auditors (one of which I share a last name with ;) who tell me stories about collecting money from these individuals. I'm often surprised by how many avenues they have to get money. Needless to say I'd rather owe a credit card company money than the IRS. This is rather ironic actually since the IRS could collect these debts far easily and more quickly if they had the staffing to do it. Not to mention the fact that it doesn’t cost the IRS 25% of the collection amount to haul in deadbeats. The IRS has a lot more at their disposal than those debt collecting agencies have. All they can do is harass people, send them nasty letters, and ruin their credit.

The IRS can pull any public record to find tax evaders including many that aren’t available to outside agencies. They have a massive staff of lawyers and accountants on hand to scare the hell out of anyone who would contest what they owe and they can file criminal fraud charges against anyone who evades collection in the civil system.

I know several auditors (one of which I share a last name with ;) who tell me stories about collecting money from these individuals. I’m often surprised by how many avenues they have to get money. Needless to say I’d rather owe a credit card company money than the IRS.

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