New Payment Option available
The IRS is giving taxpayers another payment option in their private debt collection program. The additional payment option is meant to make it easier for taxpayers in the private debt collection program to pay their tax debts. The IRS is currently using four private debt collection agencies to help them collect on unpaid tax debts by certain taxpayers.
The new payment method will let taxpayers choose the option of a preauthorized direct debit to make one payment or a series of payments toward their federal tax debt. The taxpayer will give their written permission to the private collection agency to authorize payment on the taxpayer’s behalf to the U.S. Department of the Treasury. This allows taxpayers the ability to schedule multiple payments with the ease of a single phone call. To choose the direct debit options, taxpayers will need to complete and sign a written authorization. The new direct debit supplements existing IRS-sponsored payment options and can be changed or canceled up to one business day prior to the scheduled payment. Taxpayers can still opt to use the electronic payment options available on IRS.gov/Paying Your Taxes. Payments by check should be payable to the U.S. Treasury and sent directly to the IRS, not the private collection agency.
The private debt collection program was enacted by Congress in 2017 and requires the IRS to contract private collection agencies to collect certain outstanding tax debts. This past summer, the IRS began assigning a small number of business accounts to these agencies. From the start of the program, the IRS has given the four agencies more than 1.9 million total cases. These cases equal more than $16.2 billion in tax debt. So far, the agencies have helped more than 160,000 taxpayers who have either paid their balances in full or set up a payment plan.
If you owe money to the IRS and need help settling that tax debt, Polston Tax can help! Our team of tax attorneys can help negotiate a resolution with the IRS that will settle your tax debt once and for all. Give us a call at 844-841-9857 or schedule your free consultation.