Sunday, February 05, 2006

Creditwrench and the IRS

Here is a quote from Creditwrench CEO Billie Bauer regarding collection of income tax:
And the same goes for the IRS. I sent them packing years ago. They are
bound by the same exact FDCPA laws as any other 3rd party collector.

The IRS is not bound by the FDCPA. Courts have been consistant in holding that taxes are not a consumer debt as defined by the FDCPA.
Probably the most noted court case is IRS v. Westberry. In that case, which was upheld by the U.S. Court of Appeals, the court stated:

the tax liability at issue was not consumer debt because
it was not
incurred, but “involuntarily imposed by the
government for a public purpose”
and resulted “from earning
money rather than consumption.


Creditwrench CEO Billie Bauer stating the IRS is bound by the FDCPA is false and misleading.





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