38 THE QUEENS COURIER • MAY 23, 2019 FOR BREAKING NEWS VISIT WWW.QNS.COM
TAX TIPS
THE IRS’S PRIVATE
DEBT COLLECTION
PROGRAM
BY JOHN SAVIGNANO, CPA
Sec. 6306 requires the Treasury secretary to enter
into qualified tax collection contracts with private
collection agencies (PCAs) to collect “outstanding
interactive tax receivables.”
However, the IRS cannot assign certain accounts,
including those of taxpayers who are victims of
identity theft, currently under examination, or
subject to a pending or active offer in compromise
or an installment agreement.
The weaknesses of the private debt collection
(PDC) program are the limited payment options
the PCAs can administer for the IRS, and the use
of third parties in tax collection processes. Because
of the limited payment options PCAs can offer, the
program creates the conditions for taxpayers to
enter into payment agreements with PCAs that are
less generous than they would receive from the
IRS. If the taxpayer is unable to pay the full
amount owed, then the guidelines require the PCA
to offer the taxpayer an installment agreement for
the full payment of the tax due. The term of the
agreement can be for a period of up to five years.
Taxpayers who regularly engage a practitioner
are unlikely to become a target of the PDC
program, but unrepresented taxpayers may pursue
professional representation when contacted by a
PCA. Tax practitioners can provide a valuable
service to those clients by exploring the full array
of options for settling their debts.
John Savignano is a partner with Savignano
Accountants & Advisors located at 47-46 Vernon
Blvd., Second Floor, in Long Island City. If you have
any questions or require additional information,
please call John at 718-707-0955.
YOUR PARTNER IN THE
STRUGGLE FOR JUSTICE
BEST ATTORNEY AND
BEST PERSONAL INJURY LAWYER
YOUR PARTNER IN THE STRUGGLE FOR JUSTICE
JOHN J. CIAFONE ESQ.
ATTORNEY
THANK YOU!
25-59 Steinway Street, Astoria, NY 11103
718-278-3900
johnjciafone@yahoo.com
NYS
Certified
EMT/EMS
BEST ATTORNEY
WINNER 3 YEARS IN A ROW!
BEST PERSONAL INJURY LAWYER
WINNER 2 YEARS IN A ROW!
Admitted in NY, NJ and Washington DC
Call Now & End Your Tax Nightmare!
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Co-Author of the
best selling book
“Breaking the Tax Code”
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Salvatore P. Candela, EA, ATA, ABA
Enrolled Agent - Tax Advisor
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