Despite clear instruction in the Fair Debt Collection Practices Act, which bans deceptive statements, and from the federal courts, debt collectors continue to try to intimidate consumers by mentioning the IRS or its forms, in collection letters.
Enhanced Recovery Company of Jacksonville, FL was sued for language in their collection notices which threatened consumers with Internal Revenue Service reporting. The federal district court in Philadelphia, PA agreed that the misstatement of IRS reporting might well influence the consumer’s decision making. For more detail, see Velez v. Enhanced Recovery.
If you are receiving notices from collection agencies or law firm collectors, it is wise to have them reviewed by a qualified consumer protection attorney. Whether the debt is owed or not, the collector must comply with consumer protection laws.