Jun 27, 2017|
Stacy Cowley (NY Times, IRS) by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
The IRS's using private bill collectors to collect path. Do taxes were joined by Stacy how leap from the New York Times to talk about that practiced by Stacy welcome to the show. So how much money is owed to the treasury in the form of back taxes. All 130 billion with a that the number that strives lawmakers pretty nuts and they would very much like the figure out a way to collect as much as possible. When did the iris decide do start using private tax debt collectors well. The latest round of it was the decision was made it two years ago congress ordered that accused the IRS had to diet that congress that you're going to do this and that the F effort actually started the April Islamic press began turning to count oh. Actually we've tried this before. We have twice before they did in the ninety's and they did it again and about 2006 the 2009. And both times they got shut down because the IRS found that it's costing them more money to and that that's private collectors than they were actually leaking back. Would definitely cool who were the agencies in these dec collecting agencies who are they targeting like who's there. Are they going after somebody that rose a million dollars in taxes are they going after the small tax there. You know the millionaires that they got that not the ones particularly after likely the technical reasons they're only being turned over account for the road 50000 or less. But those lines of resolution process with a lot more streamlined the IRS made a decision that was going to start there and give them the simpler counts the work on. One of the concerns that the without taxpayer advocate it's raised at that more than half of these are fairly low income consumers. Though they've really hyped up late trying to squeeze blood at the stone with a lot of these accounts. But might I guess what I don't understand is the higher rests. They know everything about us right they know we're we have checking account in Horry we have a savings account they know how much we have there are higher res. They know where we work so why does the IRS have to hire. Eight tap a bill collector why don't they just garnish wages. That's the question could come up as. When they've done studies the IRS typically has had higher rates of collection and out eclectic exactly because they can guard this week at which the outside collectors are absolutely not allowed to do. So it. It just this. I guess I've I've not understood like I want them to collect the money. I I want the internal revenues first got the money because people cheating on their taxes are not paying their taxes causes you Stacy to pay more taxes but Russell causes me to pay more. Shellac it's the love process that's part of it is that the IRS doesn't go you know the minute your tax bill that would do that don't immediately go to okay of the current accumulated. They typically do several years about Egypt collection. That's the stage with the private collectors are coming in congress that the idea is well lately they're going to get better at that and the Ira has. In those initial years before the IRS gets the point of bringing up a hammer and saying okay democratic senior laid a. I read your article and it you know there's some. Some thought that perhaps. These collection agencies are using illegal tactics. And I'm not. The point where expletive you know wading a lot more than any out now violations the hire act has taken a look at this and that no leaking the script they're using a fine. On the other side you have consumer advocates and some members of congress to lift the client saying hey we're not comfortable with the language being used here. You know. I guess we'll wait and see I just it it hasn't worked in the past. And I can't think of anybody who is more intimidating than the IRS you know when and I got a notice saying that I owe 76 cents a can't sleep for a week. You know. I. Gary noted that are so well they are in and I I'm not sure this is gonna work I suspect. I suspect we'll look back I suspect you'll be writing an article on this in two years saying how it failed. The gun in the past but here we are again. All right Stacy thanks for your time. It is this. Dead on Iraq I mean they're it sounds to me chuck and I is that they try to get blood out of the style pitchers they're dangerous trying to collect tax money. From people who are working in the underground economy. Don't have a checking account. Don't have a bank account and are paying their rent in cap and any if that's darn near impossible. Is is it bad that every time I see a story like this my first thought is why can't we just have a bat. That makes everything simple now. Now like it if you just had some people call it a fair tax. A lot of people. It made a fair tax you still have to collect. So you're right the the the bat is the simple guidelines because we don't have to worry about filing any of this at the end of the year old is to say anything that you've bought. That taxes already included you don't have to deal with that there's no paperwork. And unfortunately. All of those CPAs and tax attorneys they go out of this there's going to be going out of business you know third of congress is our attorneys. I think it'll never happen via the it to what you dream.