IRS Collection Update
News about IRS Collection Tactics and how to deal with IRS Tactics / Tax Debt

• IRS Fails Audit---Again!
  Treasury Union Members object to oursourcing tax work
• Internal Revenue Service and Tax News
  Updated news from Google
• Pay IRS with Pennies on the Dollar?
  IRS Resolution
• IRS Begins Collection Agency Use
  IRS announces use of three collection firms to privatize your tax debt.

• Why We Do What We Do
  It's no secret that debt collectors get very bad press on the national and local level. There are countless examples of this, but here is one segment that ran on the Fox affiliate in Washington, DC just last week:Abusive Debt Collector Tactics Caught on Tape It's not that there aren't plenty of collectors that ignore the law and commit egregious acts, because there are plenty of those. But when we see a piece, like the one above, that implies -- or actually comes out and says -- this behavior is standard operating procedure, we get a little mad.We started this site to serve an audience that is under-served in traditional media. We try not to be blatant cheerleaders or naive defenders of the industry. But we have always, and will always, try to give all sides to a story...including the debt collectors' side.Thank you for your support over the years. Our readers are the most critical component in our success. If you have any news you'd like to share, or a suggestion for a story, just contact us and we'll listen.Have a safe and happy holiday season.
• What's in a Name, Collectors?
  In an interesting twist to a fairly straight-forward story, a collection agency in Jacksonville, Fla., lost a case against another debt collector. The reason? The Jacksonville agency was using the other company’s name. Jacksonville-based Bass Prelitigation Services can’t use the name Bass & Associates anymore, according to a Florida Times-Union story. Turns out, Bass & Associates, P.C., a collection agency based in Tucson, Ariz., conducts no business in Florida and it was upset about another agency using its name, especially since the Florida firm is under investigation by the state’s attorney general (“State AG Suing Collection Agency for $1.3 million,” July 3). The case brings up an interesting question for collectors: what’s in a name? We all know that collectors will often use fake personal names on calls – with good reason – but what about the practice of using alternative company names, such as d.b.a.’s or the vague “Law Office” designation? Or just using another company’s name altogether? What experiences have you had using different names, and what are the pros and cons?
• Do More Collectors Mean More Violations?
  Most of us probably wouldn’t know Bill McCollum if we tripped over him but Mr. McCollum may know you. He is the attorney general of the state of Florida and his office is in court with four collection firms in the Jacksonville area, charging them with a variety of items including violating the FDCPA ("Florida AG Keeps Hitting Jacksonville Collectors," Dec. 3). A spokesperson for McCollum yesterday told insideARM.com the AG isn’t targeting collectors in Jacksonville. The city is home to a growing number of financial service firms, she said, and so there are a number of firms that are abusing laws related to collecting debt. Many in the collections industry after hearing this story probably assume that Mr. McCollum is ambitious, and that collection firms are a pretty reliable target for ambitious politicians. The second conclusion is that an increase in collectors means an increase in violations. Or put it another way – More collectors means more law breakers. That’s a gut blow that many in this business refuse to acknowledge. There's some truth to both conclusions.
• Recession on the Way, Impact Unclear
  What will a recession mean to you? It’s been a while since the U.S. experienced a recession. In 2001, there was a mild recession, according to economists, as the Internet economy imploded. The last five, six years have been good, unemployment has been at historically low levels, and our industry has certainly benefited as consumers took on more debt. There is, was, a maxim that collections did better in recessions, as more consumers went into debt. Others would say it’s not that simple, when the economy sours, everyone feels it. Another truism is that the economy usually does better in an election year as politicians do everything they can to ensure the voters feel good. That way you vote for the incumbent, or better yet, skip voting entirely. Next year is shaping up as the year for turning everything on its head. The clichés won’t apply anymore and we’ll be treading new ground. What does seem clear is that it may be tougher to do deals as banks pull back from lending and credit gets tighter. Does that mean debt paper gets more expensive? Or will there be such a flood of paper that prices will drop?
• Your Own Newsletter Powered by insideARM.com? Hello, by the way
  I'm the new product development manager at insideARM.com. What does that mean? Well if this were a hotel and you were the guests, my job would be to make sure that your visit is comfortable and fruitful. Having trouble getting around? No problem, I'll make sure you're getting the access that you requested (or paid for). Require additional services? Let me know what you need and if something is missing I'll see what I can do for you in the mean time. I also have more involved tasks of enhancing the overall experience of visitors. Community-building is one example. Like a conference hall in the hotel lobby, could this be a space for like-minded executives and consultants to share ideas and network? So in the hotel world maybe my job is part manager, part concierge, part interior decorator, part maintenance.One of my priorities is to simplify things. There's a lot of information out there for the ARM industry; only some of it is relevant to you, your prospects and existing customers. This leads to a couple of dilemmas:1. How do you find and share the information that is important to you without being overwhelmed with less relevant details?2. How do you effectively communicate your company's news and announcements amid the clutter?As for (1), insideARM.com is probably the only place online where you can get up-to-date industry news and analysis delivered in context. And as for (2), the delivery method of choice has been the e-newsletter.Our new Custom Newsletter Builder solves these dilemmas.We've put together an incredibly simple application to build a newsletter that neatly integrates your choice of company information with an a la carte selection of news and analysis. All you have to do is upload your logo, paste information that you want to communicate, and then select from the news and analysis content from a series of checkboxes. Presto! You have a newsletter formatted in HTML and also accessible online.To deliver your newsletter, you can use your company's existing email system or choose from a variety of hosted solutions (we use SparkList/Lyris for ours).It's free so you might as well give it a test run and see whether it's something that has potential for you. If you experience any problems with the application or just have general feedback to improve the service, let us know.As for your product development manager, I'll check in every once in a while with announcements of product launches, advice from a technology perspective, and maybe some occasional prose on how I'm feeling (today I feel fine). Thank you for your patronage and I hope you enjoyed your stay. Please feel free to email me with tips (or suggestions).
• Debt Purchasers in Lawmakers Cross-hairs
  A bill that is nearing consideration at the Massachusetts state capitol would force debt purchasers to notify debtors in writing when they purchase their accounts from creditors (“State to Hear Debt Purchaser Notification Bill,” 11/2). Furthermore, debt purchasers would have to notify the consumer monthly, again in writing, of any action on the account such as payments or interest charged. Read the full text of the bill here. Putting aside the likelihood of passage of the bill as is (it seems unlikely, for the record), how would such a law impact debt purchasers? Obviously, more paperwork and processes would go into buying debt in Massachusetts. But would debt buyers abandon the state altogether if this passed? Or is it a good idea...one that could conceivably cut down on consumer lawsuits?
• Are iPods Kee