Tax Machine Blog™

Watch this IRS Scammer get scammed

(and some thoughts on Private Collection of Tax Debts)

 

The news media has been reporting this story for over a year now. Foreigners scamming people into paying the stupid tax. But watch what happens when the tables are turned. And stick around after the break to hear about how congress is floating a proposal that will add more confusion and expense to the mix,

 

 

And just to be clear, although much of what the IRS does is automated – they will not call you using text to speech either.

 

 

The second video mentioned the word “shady” to describe the onset of this scam. Right now, the collection of Taxes isn’t actually sketchy.

But some in our government would like to make the collection of Taxes very sketchy.

Small steps. Small steps.

Some in congress want to pass a provision that would require the IRS to outsource the collection of some of its collections accounts. Let’s just consider something that scammers and debt collectors have in common – they will keep calling you. They will say almost anything to secure some sort of payment. That’s basically the opposite of the way the IRS operates. And yet, the last time we tried to use private debt collectors which worked out like this (sometimes a chart is worth a thousand words):

 

 

 

Private Collection Agency v. Internal Revenue Service

“This is consistent with our observation that the PCAs worked all the cases before the IRS, and had an opportunity to close the “easy” cases, i.e., liabilities owed by taxpayers who responded quickly to telephone contact . The above analysis suggests that the PCAs had little success after working the easy cases . In contrast, the IRS continued to collect significant amounts throughout the two-year study period .” – Taxpayer Advocate in its 2013 Annual Report

 

 

The sad truth is that people fall for these scams often enough for it to work its way into what seems like weekly reports in local mainstream media. “An IRS Scammer stole money” is a good filler story. Even though the scam has been widely reported by the press and the IRS, our government is considering providing US-based scammers with sufficient ammunition to run a modified version of this con by simply adding an American accent to the list of job requirements.

 

Because everyone should know – the IRS only has 2 speeds – slow and fast.

The slow part:
  1. There is no warning of imminent danger,
  2. they wear you down with letters of little significance, politely asking you to pay them (or just agree to pay them) that seem like they are written in a foreign language
But then they send you the one that actually matters.
The fast part
  1. No true warning of immediate dangers, the IRS has sent several letters over the course of several months and nothing happened, and the letters have stopped or slowed down.
  2. A debit card is declined
  3. the bank account is on hold
  4. the check was intercepted

Collection Agencies are likely to be a lot more proactive and in the faces of taxpayers about their unpaid taxes.  Collection Agencies will call often and they also wont have access to all of the same information about an individual’s account that an IRS employee would have. That sounds more like a group of scammers than a government-sanctioned pusuit.