The IRS seemingly has thrown up their hands and admitted defeat. They will be outsourcing aspects of the debt-collection program. This new enterprise is expected to be up and running in spring of 2017.
A law passed last year calls for the IRS to turn over many inactive receivables to private debt collectors in an effort to recoup overdue taxes owed by taxpayers.
IRS has selected four contractors to carry out the program. It will send a letter to those lucky taxpayers when their accounts are being transferred to a private debt collector. These letters will most likely be ignored by those recipients.
These collectors can contact people by phone, which will aid the tax fraud scammers. In spite of the obvious raising concerns these calls will raise, taxpayers will now have issues in determining whether the callers are real out sourced collectors or scammers and not legitimate.
The collectors, who must act courteously, can identify themselves as IRS contractors; in my estimation will not fully address this situation.
Also the IRS will now have to reverse their advertising campaign that instruction people that the IRS no longer call taxpayers in regards to their tax liabilities.