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Tax season may be coming to a close, but you should still be wary of predators lurking at this time of year.

The IRS recently said it would begin using private debt collectors to collect years of unpaid taxes. It plans to start sending out letters this week, according to a press release. The private debt collection program was approved by Congress in December 2015.

“The IRS is taking steps throughout this effort to ensure that the private collection firms work responsibly and respect taxpayer rights,” said IRS Commissioner John Koskinen in a statement. “The IRS also urges taxpayers to be on the lookout for scammers who might use this program as a cover to trick people. In reality, those taxpayers whose accounts are assigned as part of the private collection effort know they have a tax debt.”

Letters will be mailed first to the taxpayers and will be followed up with a phone call. The agency states the taxpayers will receive communication from the IRS first, then the private debt collectors.

The IRS is warning those taxpayers to be on the lookout for potential scammers trying to use this information to their advantage.

Those collection firms will discuss payment options with those who owe taxes, and those who do owe taxes would have first received a bill from the IRS in the mail.

The scammers tend to intimidate their victims over the phone and demand payment immediately. They also tend to threaten action from law enforcement if the victims don’t pay right away.

Also, if the caller doesn’t let you question or clarify what they are saying, just hang up.

“Unexpected and threatening calls out of the blue from someone saying they’re representing the IRS to collect a tax debt is a warning sign people should watch out for,” Koskinen said in a statement.

The IRS also said if you know you owe back taxes, you can reach out to the IRS and set up a payment plan directly with the agency, instead of waiting for a bill or a phone call. That will also decrease the likelihood of being a victim of this type of scam.

“If people have a problem paying their tax bill, we encourage them to reach out to us,” Koskinen said in a statement. “We have many programs designed to help people who are having trouble meeting their tax obligations. It’s better to reach out to us sooner rather than later for help, because interest and penalties on unpaid taxes can add up quickly.”

To read the full release, visit bit.ly/2nXsbBg.

For other business stories, click here.

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Consumer Watchdog

Sarah Hite Hando

Sarah Hite Hando is the Times Leader business editor. Reach her at 570-704-3945 or [email protected].