Private Debt Collection

past due debt

Private debt collection is a program through which the IRS (International Revenue Service) partners with debt collection agencies to help recoup the delinquent federal taxes. These private agencies help the IRS in perfectly dealing with the uncollected tax liabilities. Thus, the Private debt collection program gives the opportunity to different private companies to locate taxpayers who owe the IRS money.

The American Jobs Act of 2004 permits the IRS to enlist the private collection agencies (PCAs) to collect these uncollected taxes. After this, the debtor will subsequently receive a letter in the mail introducing the collection agency that will be dealing with the money owed. A taxpayer who owes money has the option of not dealing with a private commercial company.

If the debtors refuse to deal with a private company then they must write a letter stating the same. In this letter, they would have to state that they wish to deal with Internal Revenue Service directly, without having to deal with any private company.

Taxpayers are deterred from sending cash. Instead, they are encouraged to send a check or money order. They can also directly contact the IRS and make credit card payments. If you are facing private debt collection issues in your company, then you must seek the services of reliable debt collection agencies that will help you take the right course of action.