Debt Collection agents for the IRS - coming after ME!

[Catherine]

Well here is a new one.  Just got a letter, addressed to ME (at my business address), for tax debt owed by a former client of mine, demanding payment from me!

There was a box to check stating I dispute the debt, reason: it ain't mine! and I faxed that in immediately - along with a strongly worded letter demanding that they remove all association of this debt from my name and address.  I also stated in the letter that if this affects my business credit rating, I will consider legal action against them.  So I think they have been dealt with.  We'll see.

The larger issue is that they could only have gotten my name and contact information from the IRS, which has somehow conflated my (now-expired) POA with the principal of the LLC in the paperwork they are sending to debt collection agencies.  Who would I contact to protest this/warn the IRS/demand they ensure that debt collectors are going after the tax payers, not the tax preparers?  This is carelessness in the extreme.  Frankly, if any of us had sent taxpayer confidential information out to a debt collector and put an IRS agent's name and contact as the person responsible, the entire agency would be all over any of us, stripping us of our EFINs and PTINs and whatnot.  It's not okay, just because it's them doing it, not one of us.

[Lee B]

Was this letter from one of the collection agencies that the IRS is subcontracting with?

[Catherine]

1 hour ago, cbslee said:

Was this letter from one of the collection agencies that the IRS is subcontracting with?

Yes.

[Medlin Software, Dennis]

Probably just fishing with a wide net. If anything like payroll processing, anyone with the appearance of access to or control of funds will be looked at, and will likely have to defend. 

[Catherine]

Well, I faxed in my letter on Friday and have heard nothing. For whatever that's worth.

All I had was a now-expired POA for tax returns only, signed by a partner/member who is now deceased (hence, the POA being expired).

[Yardley CPA]

12 hours ago, Catherine said:

Well, I faxed in my letter on Friday and have heard nothing. For whatever that's worth.

All I had was a now-expired POA for tax returns only, signed by a partner/member who is now deceased (hence, the POA being expired).

I would be surprised if you do hear anything from them.  I wouldn't be surprised if you receive another letter demanding payment.  Those companies are ruthless. 

[Lee B]

It is very strange that our elected representatives keep pushing the IRS to use these subcontractors for collections.

I guess it's the power of making large donations?

Their collection rate is very low, truly pathetic.

 

[TAG]

Cathrine,  You need to contactyourUScongressman.

Terry

[Medlin Software, Dennis]

As distasteful as wide net casting collection is, like many things, there are two sides.  Low collection rate or not, it makes some business sense to farm out collections for whatever fee they get for assignment, rather than taking a zero.  The IRS is a business too... as are all tax agencies. (such as how many are looking at forced taxes, such as retirement deductions, as a profit generator with several companies offering turn key "solutions").

If not liable, and the letter is not backed by a court order, it could be a valid action to ignore it.  In some ways, no different than the number of email and mail "junk/fake/fraud invoices" most receive on a regular basis.  I try to remember to fall back on not volunteering anything to anyone.

I just listened to a VM stating it was a courtesy call before receiving a registered collection letter tomorrow...  I bet there is no letter arriving tomorrow.

[Catherine]

6 hours ago, TAG said:

Cathrine,  You need to contactyourUScongressman.

Terry

I have the most useless piece of crap sorry excuse for a legisvermin that exists. I'd rather give myself a root canal without novocaine. Better yet, give that to the "representative!"

[Yardley CPA]

9 hours ago, Catherine said:

I have the most useless piece of crap sorry excuse for a legisvermin that exists. I'd rather give myself a root canal without novocaine. Better yet, give that to the "representative!"

Curious as to what congressional district you live in?

[jklcpa]

13 hours ago, Catherine said:

I have the most useless piece of crap sorry excuse for a legisvermin that exists. I'd rather give myself a root canal without novocaine. Better yet, give that to the "representative!"

3 hours ago, Yardley CPA said:

Curious as to what congressional district you live in?

 

If you would like to continue this as an extension of the topic, please do so via PMs.

[mcbreck]

Was this is a payroll tax issue? Do you have signature authorization to file the tax forms? If both of those are yes, you are likely liable.

[Catherine]

On 6/9/2022 at 3:23 PM, mcbreck said:

Was this is a payroll tax issue? Do you have signature authorization to file the tax forms? If both of those are yes, you are likely liable.

Not a payroll tax issue at all.  Late-filed return penalty - but the return was filed late because the tax matters partner was incapacitated, his wife was fighting cancer, and the son running the business was taking care of them both and as a result doing almost no business.  We sent in penalty abatement request that was rejected only because my POA had been signed by the TMP, who had died by the time the IRS read the letter, so the POA was no longer valid.