WOW! Debt collection practices are so bad that the IRS may owe people an apology – and $1,000. The Washington Post is reporting that the Taxpayer Advocate thinks the IRS should get rid of private debt collection.
According to the Post: In her annual report to Congress, Olson urged lawmakers to authorize up to $1 million a year for the National Taxpayer Advocate to make payments ranging from $100 to $1,000, adjusted for inflation, to people who experience some sort of “excessive expense or undue burden” because of IRS errors.
Imagine, if it is so bad that the IRS is causing undue burden, imagine what private debt collectors are doing. Spending thousands or hundreds of thousands of dollars trying to collect debts that may not be owed. Running up attorneys fees to collect small debts and then alleging an outrageous amount of money in attorneys fees that they may (or probably not) be entitled to collect. Harassing and abusive behavior.
The list could go on and on. This is why I tell people to contact an attorney when you get your first notice. Even when there are no debt collection violations, an attorney may be able to negotiate a payment for you and avoid the debt collector charging you expenses and attorneys fees that it may not be entitled to collect.