Assist in collection of delinquent federal tax liabilities

Assignment Help Operation Management

Reference no: EM132135736

From 2006 through 2009, the IRS was allowed to enter into contracts with private collection agencies (PCAs) to assist in the collection of delinquent federal tax liabilities. Beginning September 7, 2006, the IRS began assigning accounts to three private collection agencies (PCAs). Announcement 2006-63 describes the limited role PCAs was to play in collecting back taxes and the legal restrictions and procedures in place to safeguard taxpayer privacy and taxpayer rights.

This program was highly controversial. Many advocacy groups argued against the program. Eventually Congress caved to the pressure, and the program was repealed, effective March 6, 2009. The program has now been revived, and in 2017, the IRS has started sending overdue tax accounts to 4 approved PCAs.

The accounts selected to go to the PCAs are ones that the IRS feels are not going to be collectible through the automated systems (no good lien or levy sources), but are small enough that it is not cost effective to assign a Revenue Officer to them. The PCAs contact the taxpayers and arrange for the taxpayer to pay the IRS directly or get into an installment agreement. The taxpayer does not pay the PCA - the taxpayer pays the IRS and the PCA is later paid a percentage from the IRS.

Do you think Congress made the right decision in reviving the IRS from using PCAs?

Reference no: EM132135736

Questions Cloud

Write the statements are true or false : For the following questions write whether the statements are true or false and give full justification for your answer

Define factors that impact organization financial viability : Increased demand for health care services leads to an increasing need for health care organizations to be cost efficient.

Political issues when dealing with tax issues : As you may have noticed in our discussion forums, there are often ethical or political issues when dealing with tax issues.

Medical office building versus marketing for retail tenants : Discuss how you would approach marketing a medical office building versus marketing for retail tenants.

Assist in collection of delinquent federal tax liabilities : The IRS was allowed to enter into contracts with private collection agencies (PCAs) to assist in the collection of delinquent federal tax liabilities.

Define impact of government regulation : Take a position on whether the banking industry needs more or less government regulation. Support your position with two (2) examples of the impact.

What is the reason for deceleration of real wage growth : The ILO's Global Wage Report states that "in the wake of the financial crisis of 2008-09, global real wage growth started to recover in 2010.

What is X : Other than $X and the $85, there were no other deposits. If the interest rate for the past 6 years has been 8%, what is X

What are the equity and efficiency implications : Illustrate graphically the monopolist's profit maximization problem. Include the monopolist's profit-maximizing price and level of output, any consumer surplus.

User Account

All Pages