IRS Contracts with 3 firms to collect from Taxpayers

This should be an interesting mess. The IRS has selected three firms to assist the IRS in collection delinquent taxes beginning the summer of 2006. The firms the IRS has contracted with are CBE Group Inc, Linebarger Goggan Blair & Sampson, LLP, and Pioneer Credit Recovery, Inc. The IRS has contracted with these firms to collect from taxpayer where the tax liability is not disputed. These firms will contact the taxpayer to make payment arrangements. In the second phase of this program the IRS will contract up to 10 firms by 2008.
The whole concept is should be frightening to taxpayers who will be contacted by these firms. Who decides if the tax liability is not disputable? The IRS, the collection firms, a Seeing Eye dog? If history can be used to predict the future “this is faulty logic” to begin with, the IRS frequently is incorrect about taxpayers tax liabilities due to return or income/expense errors from the taxpayer, IRS, or both. It is even worse when taxpayer has not filed a return, then the IRS will file an SFR, this tax liability amount is almost always incorrect. The IRS assumes their information is accurate and places the responsibility on the taxpayer to prove otherwise. No doubt these collection companies will adhere to this stance also.
These third-party Collection companies, who have a vested financial interest (reward, commission $$) in collecting from taxpayers may very likely collect from taxpayers who don’t’ owe or shouldn’t be paying the amount demanded from these collection agents. A process that is already full of errors and misinformation will many only get worse.
It is rumored the last time the IRS contracted a firm to help with deposits the problems were immense.