Taxpayer First Act Proposes Changes to How IRS Collects on Tax Debts

House Ways and Means Subcommittee released a preliminary draft titled the Taxpayer First Act. The Act contains changes to tax administration procedures which could benefit consumers who owe debts.

Baltimore, United States - April 4, 2018 /PressCable/ —

On March 26, 2018, the House Ways and Means Subcommittee released a preliminary draft titled the Taxpayer First Act. The proposed bipartisan legislation targets tax administration procedures of the Internal Revenue Service (IRS), which proponents claim are outdated. In addition to modernizing IRS operational procedures and processes, the Act also includes valuable changes that could benefit consumers who owe outstanding tax debts.

One of the key benefits for consumers of the Taxpayer First Act is that it would establish a new Independent Office of Appeals to handle tax disputes. This would be available for all taxpayers as part of the administrative review process. It would also allow consumers to access their files before review hearings, something previously only available by filing a claim through the Freedom of Information Act. This will allow consumers to be better prepared when disputing cases involving tax debts and the potentially steep penalties accessed.

Unfortunately, the Act falls short in failing to overrule last year’s controversial decision to allow for third-party collections on IRS debts, though it does modify the way the IRS refers clients to these companies. The new policy will allow consumers with tax debts and income below $20,000 per year to be excluded from referral to private debt collection agencies. Individuals with income over that amount can expect to continue to receive these types of credit collection calls.

As the IRS routinely issues warnings about fraudulent tax collections calls in which scammers impersonate IRS agents, using private companies to demand payment makes it harder for taxpayers to tell the legitimate companies and the fakes apart. “Consumers need to be aware that the IRS or an agency representing it will not call demanding payment without having first sent a written notice of the amount past due,” says District of Columbia consumer rights attorney E. David Hoskins. Consumers are urged to use caution with these calls and to not give out personal information or make payments to someone claiming to be an IRS agent over the phone.

Contact Info:
Name: David Hoskins
Email: [email protected]
Organization: The Law Offices of E. David Hoskins, LLC
Address: 16 E Lombard St, Baltimore, MD 21202, United States
Phone: +1-410-662-6500

For more information, please visit http://www.hoskinslaw.com/

Source: PressCable

Release ID: 324592