Do you owe any taxes to the federal government? If yes, then be ready to ready to receive calls for paying up the taxes, not from the Internal Revenue Service but from a private collection agency. Around 12,500 people are expected to get the calls. The government has outsourced its collection work. Incase you owe less than $25,000 to the government then get ready to receive calls from the agency people.
The agency would be responsible for those taxes which are not disputable. The agency is expected to recover around $336 million during the next ten years. On the other hand critics argue that privatizing any portion of IRS role would increase the cost of the agency, create chances of fraud and raise certain privacy issues. Despite all this around forty thousand accounts would be outsourced by the end of the year.
IRS would first send a letter informing about the selection for the private debt collection program and the second time the letter would be sent by the collection agency itself. Chances of fraud are nil as all payments would be made in the name of IRS and not the collection agency.
