In September of 2016, the Internal Revenue Service announced that it plans to begin outsourcing the collection of some overdue federal tax debts in the spring of 2017 to private contractors, and has contracted with four collection outfits to implement this new program.
Authorized under a federal law enacted by Congress last December, the new program enables the following designated contractors to collect, on the government’s behalf, outstanding inactive tax receivables. As a condition of receiving this contract, these agencies must respect taxpayer rights, which includes observing the consumer protection provisions of the Fair Debt Collection Practices Act.
In early spring of 2016, Governor Cuomo of New York signed into law the 2016-2017 Budget Act (S6409C/A9009C) (“Budget Act” or “Act”). This legislation includes amendments to the New York tax reform legislation contained in the 2014-2015 New York State Budget and the New York City tax reform legislation contained in the 2015-2016 New York State Budget. It also contains provisions which affect certain state credits and incentives, and state sales tax provisions. This is the third part of a three-part series summarizing some of the more significant provisions of the Budget Act.
Interest or bad debt deductions