IRS and Collecting Delinquent Taxes

Tax attorney Rob Wood discusses how the IRS collects delinquent taxes in his Forbes article, “Owe IRS? Dog The Bounty Hunter May Collect.” Wood characterizes those who owe taxes as those who are willing to pay, those who can’t pay, and those who won’t pay.

Rob Wood

Rob Wood

One collection option available to the IRS is the use of private tax collectors, Wood says. Senators Chuch Grassley and Charles Schumer like the idea. Private collection services are an option, even though the IRS has traditionally done its own tax collection. Whether private collection is efficient and appropriate is a subject being discussed in Congress and by the public. “It’s not an easy question,” according to Wood, “and there are some strong opinions out there.”

If you owe money to the IRS and end up having to work with them, they are fairly amiable to deal with. There are potential dangers to letting outside collectors to have all of a taxpayer’s personal information. Wood thinks that this is a terrible idea, even though it is an interesting issue to debate. “The few bad experiences people have dealing with [the] IRS . . . would be magnified tenfold” in an interaction with a private collector. The standards at the IRS are much higher than those of private collectors. Wood does not think the situation will change, but it is something to be watching.

For more information on the subject, please refer to Mr. Wood’s article in Forbes. Robert Wood is a tax attorney with Wood, LLP in San Francisco, California and spoke with The Tax Law Channel, an affiliate of The Legal Broadcast Network.  The Legal Broadcast Network is a featured network of the Sequence Media Group.