There are definite parameters the IRS has to operate in when they engage in collection activities. IRS agents have to abide by the Fair Debt Collection regulations; the actions are overseen by the independent Treasury Inspector General and Taxpayers now have the right to sue for damages for abusive or illegal activity by an IRS employee.
I. Fair Debt Collection regulations
IRM § [5.1] 1.7 05/27/99
The Internal Revenue Code requires the IRS to comply with certain sections of the Fair Debt Collection Practices Act (FDCPA). This deals with:
- contacts regarding unpaid tax, and
- harassment and abuse of taxpayers
This law applies to contacts with all taxpayers, including corporations and partnerships. Violations of IRC 6304 could subject the IRS to civil action (IRC 7433) by the taxpayer.
Specifically –
IRC 6304 requires the IRS to comply with certain sections of the Fair Debt Collection Practices Act (FDCPA). This deals with:
- contacts regarding unpaid tax, and
- harassment and abuse of taxpayers
This law applies to contacts with all taxpayers, including corporations and partnerships. Violations of IRC 6304 could subject the IRS to civil action (IRC 7433) by the taxpayer.
Contacting Taxpayers
Some contacts require the taxpayer’s consent, first. These include:
- contacting the taxpayer at any unusual time or place, or a time or place an employee knows or should know, is inconvenient to the taxpayer,
- contacting the taxpayer at work, if there is reason to believe the employer does not allow this,
- directly contacting a taxpayer who has a known, authorized representative or one that can be readily identified.
Exceptions:
- If the representative does not respond in a reasonable time, they can be bypassed. Also, the taxpayer can be contacted directly if the representative consents to the employee’s direct contact.
- If the contact is authorized by a court.
Employees can generally assume that it is convenient to contact the taxpayer after 8:00 a.m. and before 9:00 p.m. local time at the taxpayer’s location, unless there is reason to know otherwise.
Awareness that the Taxpayer has a Representative
An IRS employee is considered to know about the representative if the taxpayer says there is one. This can be written or oral. If the taxpayer is represented:
- ask for a written power of attorney or disclosure authorization form, or
- ask the taxpayer to provide the name and address of the representative
There may be doubt whether a person still represents the taxpayer or an issue is covered. If so contact the representative and ask.
Promoting Public Confidence
It is IRS policy not to use methods which are threatening or harassing to the public.
See Policy Statement P-1-1. IRC 6304 prohibits employees from harassing, oppressing, or abusing any person in connection with the collection of any unpaid tax.
The following actions are considered violations:
- the use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person,
- the use of obscene or profane language to abuse the hearer or reader,
- causing a telephone to ring or engaging any person in telephone conversation with the intent to annoy, abuse or harass any person at the called number,
- placing telephone calls without meaningful disclosure of the caller’s identity, except as similar to rules in Section 804 of the FDCPA.
EXCEPTION: If the telephone call is only for the purpose of acquiring location information about the taxpayer, the employee cannot:
- tell any third party that they are an employee of the IRS, or
- provide their title (R/O, TE, etc.) to the third party unless , that information is requested by the third party.
“Location information” is defined as the taxpayer’s place of abode and phone number at such place, or place of employment.
