The IRS – What Is It?
Many of those who have not paid taxes will find the word IRS new to them. In fact, the Internal Revenue Service, proper name of IRS, is a part of the Department of Treasury. Its main function is to collect taxes from businesses and also workers in the United States. Complying with the Federal Tax Law, the IRS collects taxes annually but they do vary from different cases such as quarterly a year for freelancers.
It all started from the office of Commissioner of Internal Revenue. Originally called the Bureau of Internal Revenue, taxes are being collected to pay for the expenses accrued during the Civil War. It was until the year 1953, when the Commissioner of the Bureau of Internal Revenue still remains but they have changed the name of the bureau to Internal Revenue Services.
When IRS resources cannot meet the workload, they hired a number of private debt collection companies to collect income tax debts. Income tax debts only apply to those who fail to make payment for their annual income tax by 15th of April every year. In this case of not being able to fully repay the overdue amount, these private debt collectors will take action on behalf of the IRS to liaise with the debtor.
The IRS approach to private debt collectors are not well informed to the public as many of us still do not know that there are private companies involved in debt collection, with the fact that they can get hold of our sensitive information which is a breach against our privacy.