WASHINGTON -- The IRS warned taxpayers Wednesday not to be duped by scammers posing as private debt collectors the agency has hired to chase unpaid tax debts.
The Internal Revenue Service designed the debt collection program to minimize that risk "because we know what it's like out there with regard to identity theft nowadays," said Brady Bennett, IRS director of collection.
But some critics of the program see so many pitfalls that they're urging debtors to insist on negotiating payment directly with the IRS.
The National Treasury Employees Union, which represents IRS employees and opposes the program, has even drafted a sample letter that taxpayers can send to opt out of the private collection program and demand that the IRS handle their case.
The IRS plans to assign 12,500 accounts with unpaid tax debts to three private agencies beginning Sept. 7. About 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.
Anyone contacted by a private collection agency has the right, among others, to insist that only the IRS deal with their account. Bennett said he hoped few taxpayers with debts sent to private collectors would opt out.
Taxpayers uncertain about the process or wanting to verify the letters are legitimate can call the IRS at (800) 829-1040.
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