August 28, 2006
The IRS is warning taxpayers about scammers posing as private debt collectors hired by the agency to collect unpaid tax debts. According to the IRS, scammers using the phone, email and Web sites attempt to impersonate IRS agents or private debt collectors hired by the IRS in order to trick taxpayers into divulging personal or financial information, or even giving up cash.
In an effort to more efficiently utilize collectors and enforcement personnel, and authorized by the 2004 American Jobs Creation Act, the IRS the IRS plans to assign 12,500 accounts with unpaid tax debts to three private agencies beginning Sept. 7. In total, nearly 40,000 accounts will be turned over by the end of the year. The IRS chose taxpayers who owe less than $25,000 and don't dispute the debt.
The three firms are The CBE Group Inc. of Waterloo, Iowa; Linebarger Goggan Blair & Sampson, LLP of Austin, Texas and Pioneer Credit Recovery, Inc. of Arcade, N.Y.
These private firms will not be authorized to take enforcement actions such as liens, levies or seizures. In addition, private firms will not be authorized to work on technical issues such as offers in compromise, bankruptcies, hardship issues or litigation.
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