IRS Turning to Private Tax Debt Collectors

Beginning in the spring of 2017, the IRS is going to take yet another run at using private debt collectors to go after its inactive tax liabilities. This is the third go around for the IRS using private debt collectors—the first two efforts, one in 1996 and the other from 2006-2009, were abandoned due to concerns over their cost-effectiveness and how the private collectors conducted themselves. Despite those failures, in December of 2015 Congress passed the Fixing America’s Surface Transportation Act (FAST Act), which included a provision that the IRS is required to use private collection agencies for the collection of outstanding inactive tax receivables.

Most recently, the IRS announced the four contractors that will be charged with the task of implementing the program across the country. They are as follows:

  • Conserve Fairport, New York
  • Pioneer Horseheads, New York
  • Performant Livermore, California
  • CBE Group Cedar Falls, Iowa

In this announcement, the IRS has offered clarity on the accounts being assigned to these collection agencies. The agencies will work on accounts where taxpayers owe money, but the IRS is no longer actively working their accounts. Several factors contribute to the IRS assigning these accounts including older, overdue tax accounts or lack of resources preventing the IRS from working the cases. The IRS has also clarified that it will not assign accounts to private collection agencies involving taxpayers who are:

  • Deceased
  • Under the age of 18
  • In designated combat zones
  • Victims of tax-related identity theft
  • Currently under examination, litigation, criminal investigation or levy
  • Subject to pending or active offers in compromise
  • Subject to an installment agreement
  • Subject to a right of appeal
  • Classified as innocent spouse cases
  • In presidentially declared disaster areas and requesting relief from collection

In disclosing the selection of its collection contractors, the IRS offered only a few more details on the ways in which these companies will interact with taxpayers and their representatives. According to the release, the IRS will give each taxpayer and their representative written notice that their account is being transferred to a private collection agency. The agency will then send a second, separate letter to the taxpayer and their representative confirming the transfer. The IRS also offered an assurance that as a condition of the contract the agencies must respect taxpayer rights, including abiding by the consumer protection provisions of the Fair Debt Collection Practices Act.

Despite well founded concerns with taxpayer rights and privacy as well as the ongoing flood of IRS-related phone scams, implementation of the law probably couldn’t come at a tougher time. The IRS indicates that it, “will do everything it can to help taxpayers avoid confusion and understand their rights and tax responsibilities.” Seemingly, in direct response to a ploy of the scams, the IRS has said that the private collection agencies will not ask for payment on a prepaid debit card and that all payments should be payable to the U.S. Treasury and sent directly to IRS.

The hope is that prior to implementation, the IRS will offer even more details about how these companies plan to conduct themselves. Any complaints or issues with the private debt collectors should be reported by calling the Treasury Inspector General for Tax Administration (TIGTA) hotline at 800-366-4484 or by visiting

Business Basics: Resources for Managing Your Business

Ask any business owner and they’re likely to tell you the same thing: They love doing their work but occasionally (and in some cases, regularly) struggle with managing business operations. After all, the work is what beckons and inspires business owners – not the bookkeeping. Many people start their businesses to pursue their passions. But if you’re like many, you could use an occasional business primer to ensure you’re managing the business as effectively as possible (as well as to keep taxing authorities satisfied). While not an exhaustive list of business knowledge, the following links can help provide critical information on a variety of basic business operations.

20/20 Tax Resolution offers the following resources to help businesses manage their tax liabilities and obligations:

The Internal Revenue Service provides a thorough overview of basic tax knowledge that is valuable to any business owner:

The U.S. Small Business Administration offers a variety of resources for business owners. Click on the links below to drill down deeper into each of these topics:

Credit Bureaus to Lessen Impact of Federal Tax Liens

For many years, there has been one thing that taxpayers can count on when taxes are owed to the Internal Revenue Service (IRS): A Notice of Federal Tax Lien (NFTL) being filed. While the NFTL is primarily used by the IRS to secure its liability against a taxpayer’s right, title and interest in property it has also become a rather harsh reflection of one’s credit worthiness, something many consumer advocates have strong opposition to.

With that said, big changes may be on the horizon for taxpayers that owe the IRS unpaid taxes. Recent reports indicate that the credit industry is on the verge of adopting new rules that could minimize—or do away with altogether—the negative impact tax liens have on credit scores. This is a noteworthy departure from current procedure in which tax liens cost taxpayers significant credit points.

On July 12, 2016, according to a post on, as part of its National Consumer Assistance Plan (the result of a settlement brokered with 31 state attorneys general back in 2015), Equifax, Experian and TransUnion are planning to significantly reduce the amount of tax-lien and civil-judgment information found in consumer credit files. Details have yet to be finalized, but “there will be less of that type of data in credit reports moving forward,” according to Stuart K. Pratt, president and CEO of the Consumer Data Industry Association, a trade association that represents the credit bureaus, confirmed to Testing is currently underway and a final plan regarding the information is expected to be implemented in July 2017.

If we rewind back to 2011, the IRS announced its own attempt at mitigating some of the negative impacts of NFTLs through the Fresh Start Initiative. According to an IRS press release at the time, “The goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers. Specifically, the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.” The changes to lien protocol did not, of course, change the way that a lien would be scored in by the credit reporting process. Instead, the Fresh Start Initiative was a collection of procedural changes that provided more alternatives to the traditional lien process.

Interestingly, studies show that the filing of an NFTL by the IRS actually assists in the collection of tax dollars. And yet despite this factual evidence, the IRS has chosen a course of action that yields far fewer notices of liens than any time in the past decade. Still, the proposed changes by the credit bureaus must give the IRS pause for additional thought into the subject. At this point, only time will tell exactly how the rules are changed within the credit industry and we should get a better idea towards the end of this year and in to 2017—observers will want to continue to pay attention to the IRS’ response. It’s only been five years since the IRS’ Fresh Strat Initiative lien changes and there are no significant IRS budget increases on the horizon. It seems unlikely that any major shifts will occur within the IRS as a result of the credit bureaus changing their rules.

What’s Your Process? How to Work a Collection Case

When it comes to the world of tax resolution, why do you take a particular action while working a case? Is it because your client asked you to? Maybe it’s because you know it’s the ‘right’ thing to do? Or, perhaps because this is always your professional recommendation? No matter what your answer might be these are not mutually exclusive options according to 20/20 Tax Resolution’s vice president, David Miles, EA. When practicing collection representation, one needs to hone in on the balance between what gets done in every case, regardless of the circumstances, and what happens only because it’s necessary given the situation.

This foundation helped shape his most recent EA Journal article (June-August 2016 edition), What’s Your Process? How to Work a Collection Case. For the sixth year in a row, Miles has been published in The National Association of Enrolled Agents (NAEA) bi-monthly publication — this prestigious journal allows members of the NAEA to stay up-to-date on any industry trends, tax updates and association news.

When asked to discuss the overarching theme of his piece, Miles explains, “Ultimately, a practitioner needs to be able to advise a taxpayer on what could happen and also what is most likely to happen in the course of a collection case. The practitioner then must take the taxpayer’s specific situation into account to develop a strategy that allows decisions on where and when action is necessary. An efficient tax resolution practice provides tangible results that are interpreted as success by the taxpayer.”

This article also served as a synopsis to a graduate level National Tax Practice Institute® (NTPI™) course that he presented during the National Association of Enrolled Agents annual conference held in Las Vegas Aug. 1-3. “I encourage those in practice to consider approaching every case, from the easiest to the more complex and the ones engaged at the first sign of a liability to those who engage you much later on, in a way that ensures the taxpayer’s interests are protected and advanced in the most capable manner possible. This session covered the process for handling a collection case from start to resolution through the aid of a specific workflow. It is my goal that each practitioner will infuse their own personality, professionalism and style into a system after having a chance to take this course,” says Miles.

Want to read the full EA Journal article? No problem, click here.

Celebrating 18 Years of Putting Lives Back Together

DENVER, August 9, 2016 – 20/20 Tax Resolution, a market leader in the tax debt resolution industry, is celebrating its 18th anniversary of providing compassionate, comprehensive tax resolution services to businesses and individuals, the company announced today.

In 1998, few people were aware of the “tax resolution” industry. Although there were a few firms specializing in resolving tax issues, most people facing IRS action or experiencing difficulties meeting tax liabilities were unsure of where to turn, or who to trust.

“We wanted to create a company that provided ethical and compassionate services for businesses and individuals who often face fear and uncertainty along with the financial burdens that come with tax issues,” said Brian Biffle, president and founder of 20/20 Tax Resolution. “So to ease these concerns, we created a process that allows a person to take control of their tax debt. We partner with each client to manage communication with taxing authorities, implement a resolution plan, negotiate on their behalf and pursue a strategy that allows them to move forward.”

In the 18 years since 20/20 was created, the need for assistance working with the IRS and state taxing authorities has only increased, according to the company’s VP of Resolution Richard Davidson.

“The complexity of tax policy makes resolving difficult issues challenging for many businesses and individuals,” Davidson said. “It’s critical that these clients work with licensed tax professionals who stay updated as laws and regulations evolve.”

20/20’s commitment to ongoing training and education, as well as its compassionate approach to client service, attracts the top professionals in the business.

“Our team members get a great deal of satisfaction knowing they are helping people reclaim their lives,” said David Miles. “Because of this, they are committed to finding the best resolution strategy for clients. Our culture encourages agents to seek innovative solutions and offer new suggestions. We equip our tax professionals with the knowledge needed to successfully resolve even the most unique cases.”

It’s difficult to comprehend the concern that business owners and individuals feel when they discover an unpaid tax liability, according to Miles.  “Many of our clients are hesitant to take that first step to finding help. We understand that fear and treat each client accordingly.”

To view a video case study of 20/20’s compassionate process in action, visit:

Presidential Candidate Tax Returns: Should Voters Care?

Reviewing tax returns can reveal a lot of information about a political candidate. But many tax experts caution the average voter may not be knowledgeable enough to know what all that information means – and they argue that any conclusions based upon a tax return can often be traced back to a voter’s pre-existing political position.

“As a company, 20/20 reviews a lot of tax returns. It’s our job to dispassionately review a  tax record and determine what steps need to be taken to resolve any tax issues,” said Brian Biffle, president of 20/20 Tax Resolution. “Voters review tax returns with a more subjective approach. So, before they pass judgment based on a candidate’s financial history, a ‘tax return primer’ might be in order to understand what they are reviewing.”

According to 20/20, here’s what voters can learn from a candidate’s tax return:

  • Sources of a candidate’s taxable income
  • Clues to business failures in losses or the overall fiscal health of business endeavors
  • Information on charitable deductions (not simply how much but where it’s distributed)

“For some voters this information can, in essence, become a test of character,” Biffle said. “They’re interested in where a candidate’s income originates and what types of charities the candidate supports.”

Other information revealed often causes voters to compare a candidate’s tax history to their own, said Biffle, and make judgments about how “in touch” a candidate is with voters, as well as the candidate’s ability to serve in the Oval Office. For example:

  • The effective tax rate paid by a candidate
  • Information on investments and loans
  • Real estate taxes (abatements, for example)
  • Real estate holdings
  • Information about the existence of offshore accounts, household employees and other holdings

“Voters sometimes view this information almost as a question of transparency,” Biffle said, particularly since candidates are not required by law to release their tax returns. “But in reality, none of these things provide a complete analysis of a person’s ability to lead. It’s only become an important factor to voters in recent elections.”

Although candidates are required to file Public Financial Disclosure Reports since the passage of 1978’s Ethics in Government Act, these reports don’t provide the detailed examination many voters have come to expect, Biffle said.

“We have clients from every walk of life, income level and background,” Biffle said. “At no time does a tax return provide an exact portrait of a person’s character. It simply offers a glimpse into their finances.”

20/20 Tax Resolution Success Story: Jurgen

20/20 Tax Resolution client came to the United States from Germany to pursue the American Dream – but unwittingly faced a classic American nightmare when he ended up on the wrong side of the IRS.


In 2009, Golden, Colo. resident Jurgen was a real estate developer converting buildings into condominiums. But when the economy tanked and the Great Recession hit, he was unable to renew his 5-year loan, and suddenly tightened monetary restrictions prevented him from securing a new loan. Thus began a snowballing cascade of financial concerns that was topped off when Jurgen’s CPA suddenly passed away – unbeknownst to Jurgen who was busy managing his financial affairs. By the time he tried to connect with his now-deceased CPA, the accountant’s files had disappeared, along with all of his documentation.

“I did not find out until I had to do my new taxes (about eight months later),” Jurgen recalled. “By then, all the CPA’s files were gone. I didn’t know what to do.”

The Problem:

Unable to be confirmed through documentation, many of Jurgen’s deductions were denied by the IRS – to the tune of hundreds of thousands of dollars. He was now facing a tax debt of nearly half a million dollars.

With mounting debt and a wife and two children to support (one of whom was about to enter college), Jurgen was nearly in a panic. He recognized he couldn’t manage this situation on his own. So he researched online for the right kind of help. He found it at 20/20 Tax Resolution.

The Solution:

20/20 conducted a thorough examination of Jurgen’s circumstances and were able to connect with the IRS and intercede on his behalf. His 20/20 Senior Tax Consultant – working with Jurgen – took immediate steps to bring sanity back to his personal and business lives, including:

  • Getting all past and current tax returns in proper order in order to expertly diagnose the problem
  • Identifying all the next steps necessary
  • Reducing wage garnishment, which had been implemented by the IRS
  • Securing a hold on both the state’s and the IRS’ additional collection efforts
  • Negotiating a payment schedule that Jurgen could accommodate without destroying his financial future

As a result, 20/20 was able to help put Jurgen’s life back on track. “They treated me like a human being not somebody that screwed up,” he said. “They understood that the IRS is hard to deal with.” Based upon our experience working with taxing authorities, 20/20 was able to quickly assess Jurgen’s circumstances, alleviate his concerns and help calm him down. “It’s not a good situation when all of the sudden the IRS is after you,” he said. “It’s pretty scary when you think you’re going to lose everything and have to start over. There’s no way you can go through this by yourself. Go to somebody that’s a professional.”

To hear more about Jurgen’s story and his experience working with 20/20, watch the video above.

Congress Not Too Keen on IRS Funding Request

Additional funding? Thanks, but no thanks. That’s the sentiment seemingly coming from Congress in response to a tax season reflecting improvements in IRS customer service. The IRS attributed much of its success to the additional $290 million it received from Congress this year. And while a similar provision exists in the House’s 2017 budget, the IRS is not likely to see any other budget increases.

As reported by Nicole Ogrysko, during a July 28th press conference, IRS Commissioner John Koskinen stated, “Our hope is that as we’ve demonstrated to the Congress the great utility of the additional funding we got this year, that that will serve as a basis for an additional increase next year, which would be devoted to cybersecurity, identity theft and taxpayer service.”

The National Taxpayer Advocate’s mid-year report highlighted taxpayer telephone wait times that were cut from 23 minutes to 11 minutes on average and an increase of the number of taxpayer calls answered from 37 percent to 73 percent. Those are big successes for the IRS after consecutive years of very poor customer service performance. Yet despite those accomplishments, Taxpayer Advocate Nina Olsen indicated that several other problems in the agency can be attributed to the lack of funding.

Congress’ refusal to consider greater funding increases despite signs that such funding could improve the taxpayer’s experience will continue to be a contentious topic as the rest of this year unfolds.


20/20 to Provide Expertise at 2016 NAEA Conference

David Miles, EA, vice president of 20/20 Tax Resolution, will present two National Tax Practice Institute® (NTPI™) courses at this year’s annual conference of the National Association of Enrolled Agents in Las Vegas Aug. 1-3.

The highest credential awarded by the Internal Revenue Service, an enrolled agent (EA) is a federally authorized tax practitioner empowered by the U.S. Department of the Treasury to represent taxpayers before the IRS. Miles will be leading two courses, including:

  • Introduction to Collections – Monday, Aug. 1 This introductory course to IRS Collections explores the fundamentals of the IRS collection system, as well as the skill set needed by those practitioners just beginning to represent clients before Collections.
  • Case Evolution with a Flowchart Approach – Wednesday, Aug. 3 This session covers the process for handling a collection case from start to resolution through the aid of a specific workflow.

“At 20/20, we’re very proud that every one of our tax professionals serving clients nationwide are credentialed enrolled agents or attorneys – and many of our agents hold both of these titles,” said Brian Biffle, president of 20/20 Tax Resolution. “Constant change is the nature of the tax business, and David’s expertise will help NAEA attendees refine and enhance the skills they take back to their clients.”

NTPI is a three-level program developed to sharpen the skills of enrolled agents at all stages of their careers. With each level of this program, participants expand their knowledge and skills, and gain the confidence needed to guide their clients successfully through the challenging maze tax regulations and agency structure.

Taxes 2016: Collection Cases, Unpaid Balances Increase

More people owe more money in unpaid taxes than at any other time in U.S. history, according to recently published figures from the Internal Revenue Service. According to the numbers for fiscal year 2015, unpaid tax balances increased by $7 billion and the number of active collection cases grew to 13.5 million.

All this data, coupled with the recent IRS announcement that the agency is planning to hire up to 700 enforcement agents to pursue collection efforts, points to an increasing need for tax resolution services, said David Miles, vice president of 20/20 Tax Resolution in Broomfield, Colo.

“With a growing emphasis on collection and the addition of 700 new enforcement hires, businesses and individuals facing unpaid tax burdens would be wise to take action first before the IRS takes it for them,” Miles said.

According to news reports, IRS hiring will first be focused on the department that monitors small businesses and self-employed individuals. This only increases the urgency for these audiences to address any lingering tax concerns, according to Miles.

“Most of our clients are an adaptable cross-section of American business,” he said. “They have a general sense of business, but the nuances of tax policy are not usually top of mind. Particularly with this new IRS development, our advice is always to err on the side of over preparation.”

Primarily, that means planning ahead for tax burdens, closely monitoring financial concerns throughout the year and keeping ahead of any potential IRS action.

“Undercapitalization seems to be the universal issue with companies facing tax problems.” Miles said. “Whether due to poor planning or unforeseen circumstances, undercapitalization often leads to a company’s collection problems. However, many companies compound the problem by ignoring the issue or just hoping it will go away. Being proactive before the IRS takes action is the best way to resolve tax challenges.”