The Congress of the United States has once again shown its august wisdom in helping thieves and con artist to divest taxpayers of their hard-earned money and savings through fraud and misrepresentation. Recently, Congress ordered the Internal Revenue Service (IRS) to start using private collection agencies to collect old tax debts from taxpayers. This policy change is intentionally targeted at low and middle income taxpayers.

For many years, the IRS has battled thieves and con artist that were calling taxpayers posing as IRS collectors demanding money from undocumented workers, the elderly and unsophisticated taxpayers. The scammers would demand the payment of the alleged tax obligation under threat of criminal prosecution or deportation if the taxpayer failed to comply with the scammer’s demand for payment. The IRS responded to this scheme by informing and educating taxpayers that the IRS DOES NOT CALL YOU TO DEMAND PAYMENT OF TAX OBLIGATIONS. The IRS usually sends letters prior to taking more aggressive collection action. Once the taxpayer initiates the first telephone contact by calling the IRS agent’s number and ID on the letter, the IRS will then return the calls to the taxpayer.

Under this new policy, however, the Congress has kicked open the door for every Nigerian and other foreign country scammer to again aggressively and successfully, steal hundreds of millions of dollars from U.S. Taxpayers, by allowing private third party collection agencies to start contacting taxpayers regarding paying past due tax obligations. The flood gate of scams, schemes and fraud are ripe for exploitation of American taxpayers thanks to our elected officials in Congress.

In the past, if a taxpayer owed a tax obligation, they could contact the IRS and explain their situation and prove that attempting to pay the tax debt would create an undue financial hardship. Once verified, the IRS would send the taxpayer a letter or call informing the taxpayer that the tax debt has been placed in an “not collectible” status. The status is revisited each year by the IRS when the taxpayer files another tax return. If the taxpayer’s situation remained virtually unchanged for several years and the statute of limitation for IRS collection runs, then the IRS is barred by law from ever attempting to collect that particular tax debt again and it is wiped out. The taxpayer is no longer responsible for it.

However, under this new policy, with the IRS using private collection agencies, all that changes. A private third party collection agency can call the taxpayer regarding the alleged tax debt and be very aggressive in its attempt to collect the tax obligation. The private collection agency is under no obligation to inform or offer other alternatives to collection (as the IRS is obligated to do) to the taxpayer if it is determined that the taxpayer cannot pay the obligation or in attempting to do so would create an undue financial hardship.

This may cause many taxpayers to seek protection from the Bankruptcy Courts, however, most tax debts are not dischargeable in bankruptcy unless the tax debt is more than three years old and meets certain collection criteria, or the taxpayer can prove to the bankruptcy court that the tax debt has been owed for more than three years and paying it would cause an undue financial hardship.

Since the members of congress that are elected to represent the whole of their constituents and protect them against such opportunities of fraud and exploitation are failing to do so, then taxpayers need to un-elect the buffoons that engage in and pass such ridiculous legislation contrary to the best interest of the American people.

Taxpayers should use the power of the ballot to recall these idiots that become self-serving millionaires on the backs of their constituents. A recall petition call be picked up at any election commissioner’s office in the jurisdiction of the elected official. All the taxpayer will have to do is give their name and telephone number to the clerk in the election commissioner’ s office and give a reason of why the petition is being obtained and what elected official it is against. Before the taxpayer can get home with the petition, the election commissioner will have contacted the elected official and the press and inform them that a recall petition had been picked up against the official.

You will be amazed at how quickly the elected official will respond and attempt to save face with his or her constituents. We need to start holding these elected officials accountable for their decisions, especially when it is contrary to good order and discipline of our way of life and promotes fraud and misrepresentation at the cost of the taxpayers and their livelihood.

Taxpayers should become familiar with the Fair Debt Collection Practices Act (FDCPA), and start asserting their rights under the law if they become the target of aggressive debt collection tactics. Many debt collection agencies may become extremely hostile toward taxpayers when they become empowered to collect on behalf of the IRS. Some may even deem it as a sovereign authority to do so. However, the fact remains that a third-party debt collector is subject the FDCPA and must strictly comply with its provisions. If you feel you are the victim of an aggressive, unfair or unlawful debt collection tactic, call our office for a no cost consultation. If you are determined to be a victim of an unlawful debt collection attempt, our law firms will represent you at no upfront cost to you.