New Law Allows IRS to Hire Private Debt Collectors for Old Debts

Ever wonder how some of our laws are passed?  Here is another example of an important change in the law buried in an innocuous bill.   Would you believe a highway funding bill could include a law allowing the IRS to hire private debt collectors?  Sounds ridiculous, right?  Surprise – take a look at the new “Fixing America’s Surface Transportation (FAST) Act” – a five-year highway funding bill.  The FAST Act became law on December 4, 2015.
Currently, the IRS is unable to collect $380 billion in tax debt – a 23 percent increase since 2009–according to a July report from the U.S. Government Accountability Office.  The bill may open the doors for debt collection agencies to pursue taxpayers who are currently working with the IRS (pending or active Offer in Compromise, taxpayers claiming innocent spouse relief) and taxpayers who are the victim of identity theft.
What could possibly happen when the IRS shares confidential information (social security numbers, bank account numbers and other sensitive info) with others??  How about increased likelihood of identity theft?  Certainly there will be a substantial increase in collection fees; applying payments to their fees ahead of the tax liability.  Most likely the IRS will refuse to talk to the tax payer once the debt is assigned to a debt collector.
So, what could possible go wrong with the little known, but huge change, in the current IRS rules and regulations?  Only time will tell.

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