In September, 2016, the IRS announced that it contracted with four debt collection agencies to begin collecting certain overdue federal income tax debts starting in the spring of 2017. This potentially lucrative contract has raised a number of questions among collection agencies and other ARM service providers that industry experts Mike Ginsberg and Randy Kamm addressed in their recently recorded podcast about this important topic.
The IRS tax collection program represents a veritable “mother lode” of new business for the ARM industry.
However, only transparently-managed, fully-compliant collection agencies with scalability to absorb volume, robust data security standards, and skilled and professional workforce will be eligible to receive this windfall of account placements.
Sources: *Courtesy of Kaulkin Ginsberg (April 2016)
** IRS Data Book; GAO Financial Audit of IRS, and GAO Financial Audit data
This podcast sheds light on why the third attempt at an IRS private collection agency contract is likely to succeed following the important lessons learned from the first two failed attempts over the past 20 years. Assuming this attempt is successful, the Joint Tax Committee of Congress estimates this program will recover around $2.5 billion over the next 10 years after expenses.
This podcast is a product of KG Prime, Kaulkin Ginsberg’s market intelligence service. For more information about how your company can access timely ARM research to help you make decisions about growth, please contact us at firstname.lastname@example.org. To contact Randy Kamm with any questions about this contract, please email him at email@example.com.