Debt Feed

Yes, that could be a real IRS revenue officer knocking on your door if live in Arkansas, Texas or Wisconsin and have ignored prior notices to pay your overdue tax bill. Have you been a bit remiss in meeting your tax duties? If so and you live in Arkansas, Texas or Wisconsin, you've likely or soon could find an Internal Revenue Service agent on your doorstep. The IRS has announced that these in-person visits are part of a larger effort by the agency to, it its words, ensure fairness in the tax system. The special compliance efforts will encompass both... Read more →


The National Debt Clock is a billboard-sized running total display installed on the western side of One Bryant Park, west of Sixth Avenue between 42nd and 43rd Streets in Manhattan, New York City. On Oct. 31, 2019, its numbers topped $23 trillion for the first time. The national debt is the total of all the money the U.S. government has borrowed and owes to its creditors, as well as the interest on that debt. Going from the macro to micro level, it's analogous to the total you might owe on a mortgage, a car loan and credit cards. And the... Read more →


I've dealt with bill collectors over the years. Fortunately for me, it's been on behalf of a couple of relatives who found themselves in over their heads financially. Fortunately for my family members, after much — way too much — and often contentious back and forth, we were able to come to a satisfactory resolution. That's why I tend to share former Taxpayer Advocate Nina Olson's skepticism about the way that private collection agencies, or PCAs in tax-acronymese, interact with folks who owe taxes. But despite my, Olson's and many others' lingering distrust of these operations, private debt collect is... Read more →


In one tax world case, it does appear that the third time really is a charm. A recent Internal Revenue Service report says that its latest use of private bill collectors to bring in old unpaid taxes is working. In fact, this latest iteration has produced enough additional money to allow the IRS to hire new in-house employees. Third time's a collection charm: The use of private collection agencies, or PCAs as they are known in tax acronymese, was restarted in 2017 after being mandated as part of a 2015 transportation law. It's the third attempt after two previous PCA... Read more →


College and its ever-increasing costs certainly have gotten a lot of attention. There's the group of Democrats seeking their party's 2020 presidential nomination. Obviously spurred by the enthusiastic supporters of Independent-turned-temporary-Democrat Sen. Bernie Sanders and his promise of free college, many other White House wannabes also are talking up educational assistance. Then there's this week's Operation Varsity Blues. You might not have caught the name, but let me drop two others to spur recognition: Felicity Huffman and Lori Loughlin. Yeah, that's the name federal investigators gave to their take down of a far-reaching college admissions scheme. Wealthy parents, elite school... Read more →


The White House's fiscal year 2020 budget proposal was delivered to Capitol Hill today. (Screenshot from AP video via USA Today) The Trump White House today released its fiscal 2020 budget request. The annual fiscal request for money is a month later than usual this year because of the 35-day government shutdown. In his latest budget proposal, Donald J. Trump asks for $8.6 billion for the border wall. He's also calling for spending cuts of $2.7 trillion, the largest proposed reduction ever by an administration. The math involved also is monumental. The budget forecasts trillion-dollar deficits for four straight years,... Read more →


Welcome to the Year of the Pig, the twelfth of the 12-year cycle of animals which appear in the Chinese zodiac related to the Chinese calendar. While this year and sign has many meanings in the Chinese culture, it also conjures thoughts of the ubiquitous piggy bank and how we can save more this and every year, regardless of which calendar we follow. Click image to watch full Year of the Pig video from Global News Canada. More of us could use a bigger, and fuller, piggy bank this 2019's Year of the Pig arrives. The recent federal government shutdown... Read more →


October's here! In addition to making some general fourth quarter tax moves, this month is when many employees get to reassess and choose coming-year workplace benefits, many of which also offer tax advantages. And tax-free help paying off student debt could soon be part of those packages. Millennials have overtaken Baby Boomers as the largest generation in the U.S. labor force. That's why today's employers are trying to figure out exactly what these younger workers want. The traditional worker wishes still apply. All employees want decent pay, regular raises and promotion possibilities. But today's twenty- and mid-thirty-somethings want more, and... Read more →


Homeowners are still trying to wrap their heads — and tax plans — around the many Tax Cuts and Jobs Act (TCJA) changes to the Internal Revenue Code that are related to personal real estate. There's the new limit on federal deductions for mortgage interest on future home loans, the cap on real estate taxes on your primary residence and the elimination of the write-off for interest paid on home equity loans. When the new tax law took effect on Jan. 1, the deduction on home equity lines of credit (HELOCs) or home equity loans became a thing of the... Read more →


Private bill collectors are, according to four U.S. Senators, making calls about overdue federal taxes that could put taxpayers in financially compromised situations that are scarier than those faced by the terrified Cindy Campbell character (played by Anna Faris, pictured above), in the "Scary Movie" films. During a recent U.S. House hearing, Internal Revenue Service watchdogs told Representatives that, less than two months on the job, private tax bill collectors were already breaking collection and consumer protection rules. Now four Democratic Senators have raised additional concerns about one of the private collection agencies' tactics, which could put owing taxpayers' homes... Read more →


Remember that recent economic analysis that said Americans were more in debt than they've been in almost a decade? The bulk of that debt is housing related, but student debt also is a big contributor to the growing owing. Households today are borrowing differently than they did nine years ago, note New York Times reporters Michael Corkery and Stacy Cowley. The latest data show that student loan debt, driven by soaring tuition costs, makes up 11 percent of total household debt, up from 5 percent in the third quarter of 2008. Nice days mean students can turn their college campus... Read more →


Americans have again dived into the deep end of the personal debt pool "Americans have now borrowed more money than they had at the height of the credit bubble in 2008, just as the global financial system began to collapse," write Michael Corkery and Stacy Cowley in today's New York Times' DealB%k column. The $12.73 trillion in debt reported in the first quarter of 2017 is comprised mainly of housing-related borrowing. But there is a bit of good news here. Here's hoping that the new residents find being homeowners as sweet as these house warming cupcakes. (Photo by Danl Lurle... Read more →


This post updated 10 p.m. CT, Monday, Feb. 13, 2017. Donald Trump has promised to deliver in a few weeks a tax plan that would "lower the overall tax burden on American businesses big league." The effusive description notwithstanding, some corporate tax reform would be welcome. It's long been accepted that the U.S. tax code needs work when it comes to business. The new Republican president and GOP-controlled House and Senate are promising business and individual tax reform. Analyses of the proposals so far, however, show that rich folks, personified in the character Jay Gatsby portrayed by Leonardo DiCaprio in... Read more →


If you have an old federal tax debt, you might be getting a call from a private debt collection agency next year. Under provisions of the transportation bill enacted last year, the Internal Revenue Service is once again to turn over some delinquent tax accounts to private debt collectors. That process will begin in 2017. And today, the IRS announced the a private collection agencies, or PCAs, that it has selected to do the job. They are: CBE Group 1309 Technology Parkway Cedar Falls, Iowa 50613 Conserve 200 CrossKeys Office Park Fairport, New York 14450 Performant 333 North Canyons Parkway... Read more →


Donald J. Trump wants the United States to renegotiate its federal debt. Erasing debt can help with individuals' cash flow, but it brings new tax considerations. I'll leave that economic debate to the experts in the dismal science. They already are all over Trump's CNBC interview, where the self-proclaimed "king of debt" addressed the issue of whether the United States should pay its debts in full. "I would borrow, knowing that if the economy crashed, you could make a deal," the presumptive Republican presidential nominee told the cable financial news network. "And if the economy was good, it was good.... Read more →


This is truly an October surprise. The persistent partisan gridlock on Capitol Hill has been broken, at least when it comes to the country's key financial needs. The House and President Obama announced yesterday, Oct. 27, that they had agreed on the country's overall budgets for the 2016 and 2017 fiscal years and extend the debt ceiling deadline to March 15, 2017. Outgoing House Speaker John Boehner, joined by Rep. Cathy McMorris Rodgers (R-Wash.), announced the two-year budget deal he and the Obama Administration hammered out. Click image to view the video. "This is a good deal. It's a solid... Read more →


I was feeling a bit overwhelmed recently, looking at what was on my to-do list and the time left to do it. Then I saw Congress' schedule and thought, I'm in good shape. The House and Senate are facing a series of deadlines that have much more serious consequences than me getting a story or blog post in at the last minute (please don't tell my editors I said that!). There are four major dates on the remaining 2015 Congressional calendar: October 1 -- The end of 2015 appropriations and the return of sequestration. October 29 -- Expiration of the... Read more →


It's almost time for school to start. For college students, or their parents, that means it's also almost time to start emptying out bank accounts. OK, maybe you don't have to liquidate all your assets to go to college nowadays, but it is expensive. Tuition is, of course, a major outlay. And most folks now pay for their continuing education by taking out loans. A lot of loans. New York Federal Reserve figures show that student debt hit $1.2 trillion in the first quarter of 2015. School-related money is owed by about 43 million Americans. That's why the ever-escalating cost... Read more →


Look out. Some hitchhiking private tax debt collectors could stall the Highway Trust Fund, which already is running on fumes. Claudette Colbert shows Clark Gable how to catch a ride in the classic film It Happened One Night. Their characters were much more welcome hitchhikers than are private collectors of tax debt who are hitching a ride on the Senate bill to pay for the Highway Trust Fund by July 31. Photo/movie trailer screenshot courtesy Wikipedia. The Senate late Wednesday, July 22, finally restarted its transportation funding effort thanks to a 62-36 vote that will let debate on the actual... Read more →


Greece's future, both financially and as part of the Eurozone, remains unclear as the Mediterranean country and its creditors struggle to come to an agreement on what should be done about its persistent inability to pay its bills. UPDATE Monday, July 13, 2015: European leaders agree to tough Greek rescue plan. In simplest terms, the Greeks borrowed more money than they can pay back. The New York Times offers a more detailed look at how Greece got to this financial crisis point. At issue now is a three-year bailout of 53.5 billion euros, or $59 billion. It's not a new... Read more →