According to a recent Government report, it was found that private collection agencies contracted by the IRS were only able to collect roughly 2% of outstanding taxes from the more than 700,000 outstanding taxpayer accounts assigned to them since 2017.
So what does this mean for the program?
Honestly, it’s difficult to say.
The program was no doubt hampered by the stringent guidelines faced by the agencies which were contracted. They were unable to call delinquent tax payers directly, so it’s likely that these poor results are, in part, based on the parameters within which they had to operate.
Moving forward, it’s unlikely if the IRS would turn to private collection agencies again, having done so in the past on two other occasions (which also produced poor results).
The bottom line is that though professional collections agencies are effective when working on of businesses, medical offices and financial institutions, the current track record shows that they are much less effective when attempting to collect outstanding tax revenue.
Does your business or practice need help collecting what it is rightfully owed?
Save time, money and aggravation by hiring a professional agency who can help you collect some (or all?) of your outstanding revenue.
Click the link and compare free collection agency quotes today.
After all, when you get down to it you really have two choices:
- keep doing what you’re doing (and hope for a different result), or
- find a national collection agency that will help you recover what’s rightfully yours.
Either way you decide… it’s your money.