The new bill, S. 2260 (Senate Bill), would require IRS to turn over delinquent accounts of taxpayers to private collection agencies. This provision was inserted into the tax extenders bill currently being considered in Congress.
The bill, if passed, would allow the IRS to turn over private taxpayer data to collection agencies for collection where:
- The taxpayer cannot be located
- More than 1/3 of the 10 year Statute of Limitations has lapsed (more than 3 years has passed since the debt became collectable); or
- More than 365 days has passed without interaction with the taxpayer or authorized third party representative.
Excluded accounts include:
- Accounts in pending/active offer in compromise
- Innocent spouse cases – where one spouse claims a defense to the tax liability caused by the other spouse where the two individuals are divorced or separated;
- Accounts involving taxpayers who are deceased, under 18, in a designated combat zone, or a victim of tax-related identity theft;
- Taxpayers currently under examination, litigation, criminal investigation, or levy; or
- Taxpayers currently under IRS appeals program.
If you are being audited by the IRS or State of California, or you owe taxes, contact our office and speak with our team of San Diego tax attorneys. Before contacting the IRS or California tax agencies, you should know your rights and understand possible legal defenses that you may have. Call our office for a free consultation.