Released: August 24, 2006

I.R.S. warns of tax-collection swindlers

Source: The Associated Press (Free Registration)

The Internal Revenue Service warned taxpayers on Wednesday of swindlers posing as debt collectors hired by the agency.

The I.R.S. created the collection program to minimize that risk, “because we know what it’s like out there with regard to identity theft nowadays,” Collection Director Brady Bennett said.

Some critics said the program had so many pitfalls that they were urging debtors to insist on negotiating directly with the agency. The National Treasury Employees Union, which represents employees of the agency and opposes the program, has drafted a sample letter that taxpayers can send to leave the private collection program and demand that the agency handle their cases.

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