IRS offers small business self-employed collection campaigns, messages

Written on May 01, 2017

The IRS is running three small business/self-employed collection campaigns and messages that can help CPAs working with and for small businesses.

The campaigns and messages are:

  1. Payment options and other online tools
  2. Offer-in-compromise which include important initial payment changes
  3. Private debt collection

Payment options and other online tools:

Apply for an online payment agreement for individuals and businesses
This application allows a qualified taxpayer or authorized representative (power of attorney) the opportunity to avoid long telephone wait times or the need to visit or write to an IRS office to apply for an installment agreement. Once you complete the online process, you will receive immediate notification of whether your agreement has been approved.

Payment plans, installment agreements
If you're financially unable to pay your tax debt immediately, you can make monthly payments through an installment agreement. As long as you pay your tax debt in full, you can reduce or eliminate your payment of penalties or interest, and avoid the fee associated with setting up the agreement.

IRS direct pay - Use this free, secure service to pay your individual tax bill or estimated tax payment directly from your checking or savings account. You'll receive instant confirmation that your payment has been submitted.

Check your balance and view your payment history – You can view your balance online or refer to the information in the notice you received to determine the amount you owe. When you access your tax account you can also view your recent payment history.

Offer in compromise:

Offer-in-compromise - An offer in compromise allows you to settle your tax debt for less than the full amount you owe.

New Change:

Starting with offer applications received on or after March 27, 2017, the IRS will return any newly filed offer-in-compromise application if you have not filed all required tax returns. Any application fee included with the OIC will also be returned. Any initial payment required with the returned application will be applied to reduce your balance due. This policy does not apply to current year tax returns if there is a valid extension on file.

  • OIC pre-qualifier tool – Before you complete the OIC application, use this tool to see if you may be eligible for an offer in compromise.
  • OIC FAQs – See our FAQs and get answers to common OIC questions.
Private debt collection:

Private debt collection - The IRS planned to begin private collection of certain overdue federal tax debts in April 2017 and selected four contractors to implement the new program. These private collection agencies will work on accounts where taxpayers owe money, but the IRS is no longer actively working them.

  • Scam phone calls - Stay vigilant; the IRS urges you to be on the lookout for unexpected scam phone calls from anyone claiming to be collecting on behalf of the tax agency.
  • TIGTA Office of Investigations - To report a threat, assault or attempted assault by a private collection agency employee, contact the TIGTA Office of Investigations with responsibility for your geographic area.

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