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Outside Collectors for I.R.S. Are Accused of Illegal Practices

Source: nytimes.com - Jun 28, 2017

Raid your 401(k). Ask your boss for a loan, load up on your credit cards, or put up your house as collateral by taking out a second mortgage.

Those are some of the financially risky strategies that Pioneer Credit Recovery suggested to people struggling to pay overdue federal tax debt. The company is one of four debt collection agencies hired by the Internal Revenue Service to chase down late payments on 140,000 accounts with balances of up to $50,000.

The call scripts those agencies are using — obtained by a group of Democratic senators and reviewed by The New York Times — shed light on how the tax agency’s new fleet of private debt collectors extract payments from debtors. On Friday, those senators sent a letter to Pioneer, the I.R.S. and the Treasury Department accusing Pioneer of acting in “clear violation” of the tax code.

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Category: General Business

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