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Many people have by now become aware of the newly improved whistleblowers program that the IRS has put into place. They have a reward system which has been created to profit individuals that may provide them within information that results in the prosecution of someone for income tax fraud, or collection of fees owed through tax evasion. By encouraging people to report tax fraud, the IRS hope to increase overall levels of honesty within the tax system, as well as to install a system that is going to enable them much more thoroughly to root out those who are trying to avoid paying what they owe.

However, there are some details about this program that CPA’s really need to find out about. There are actually a couple of reasons that a CPA should know the details of this system used to report tax fraud. The increases that came as a result of the revamp to the system has also increased the number of people coming forward within information. While many go straight to attorneys in order to help them process the tip and submit it to the IRS, there are cases where they may be benefitted more by visiting with a CPA first, who could easily by taking the time to research the program let them know what the appropriate action should be.

CPA’s should become familiar with the laws around this program because informants may come to them looking for information. A good example is that the program will attempt to protect the identity of someone providing information in one of these cases. If the program goes to any kind of judicial proceeding though, there is no protection against being called as a witness, at which point their identity will become exposed. It is also important to let prospective informants know that any misinformation they provide could leave them open to prosecutions for perjury in particular situations.

Whistle blowers have another reason to contact CPA’s as well, and this is one that doesn’t relate as directly to income tax fraud. If an informant should be paid out a benefit under the new program for reporting whistleblowers, the reward that they receive could be considerable. As such, they may need to contact their CPA regarding the tax considerations of their windfall, and accountants need to be familiar with these. Full reporting and withholding applies to rewards paid out under the IRS Whistle Blower Program.

Tags: collection, cpa, irs, irs whistle blower program, tax evasion, tax fraud, taxes
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One of the most potent yet most misunderstood tools you can use to recover your debts is the Debt Collection Letter. In essence there are two types of debt collection letters: a) Reminder Letters; and b) Final Demand Letters.

With regards to Reminder Letters, to ensure recovery of your debt is fast and amicable, there are 6 strategic elements you must incorporate in your letter. These six key-components are so pivitol to your success that should you fail to utilise all 6 not only will your chances of recovery plummet, the likelihood of stirring up a bitter drawn-out battle will skyrocket.

Now as these letters are sent-out soon after an invoice becomes overdue, they need to fulfil two primary objectives: 1. Recover the money owed and 2. Preserve your customer relations.

Bearing these dual objectives in mind here then are the 6essential elements to incorporate in your Reminder Letters.

6 Essential Elements Of Debt Reminder Letters

1. Account Details
In order to minimize confusion and delays it’s critical that you outline all the details associated with the overdue account. As a bare minimum you should always include a description of goods or services rendered, the amount outstanding, when it was due and your payment terms.

2. Let Them Off The Hook
Eventhough the account is overdue, at this point you want to avoid making any accusations or judgements that may upset your good customers.. With this in mind you should diffuse any tension by making a brief remark that presumes the debtor has simply forgotten this invoice.

3. Spell Out What They Need To Do
Having just ‘let them off the hook’ you must now state in no uncertain terms exactly what action they need to take… namely to clear the outstanding balance. In an effort to avoid confusion it’s critical that you specify how much needs to be paid as well as a due date. Furthermore, to facilitate rapid payment you should provide a range of payment options as well as provide your full contact details.

4. Offer Assistance
In addition to simply forgetting about or misplacing your invoice, there are 3 other primaryreasons why an account has not been paid on time. These three reasons are:

A) Limited funds;

B) They dispute the invoice and/or the quality of goods/services received; and

C) They are a career criminal and/or a professional debtor.

In the first two scenarios there exists a window of opportunity for you to recover your accounts. To facilitate rapid and amicable recovery of these accounts you should open respectful communication channels with a view to resolving these issues. You don’t need to write anything too fancy. A sentence along the lines of: “Naturally, should you wish to discuss any matters relating to this letter please do not hesitate to contact me.” will do fine. Once again, give them a range of options as to how to get in touch with you or a nominated member of staff.

5. Pressume Compliance
To reinforce your expectation of payment you should conclude your letter by thanking them for attending to this matter in a timely manner. What’s more it’s also a good idea to point out a benefit of settling the overdue account. Such a benefit may be to maintain an open account with your business or to preserve your working relationship. Doing so will convey your desire to maintain a good relationship.

6. Personalize Your Letter
To demonstrate both your regard for your customer as well as the importance you place on payment it’s sound practice to sign off the letter with a real signature.

Additional Tips
When writing Reminder Letters it’s important to be brief while at the same time being personable. Avoid adjectives and lengthy explanations. Use simple words, small sentences and short paragraphs. And write the letter as you would like to be spoken to.

If you decide to copy a free debt collection letter template be sure all six of these criteria are included.

Finally, while many people suggest sending a series of Reminder Letters over time with sequentially increasing assertiveness, doing so needlessly sets you up to fail. It’s a well documented fact that the longera debt goes unpaid the less money you’ll actually recover.

To this end, if a debtor does not respond to your first Reminder Letter, give them a call. Should they then fail to settle the account or alternatively they default on a repayment plan then that’s irrefutable evidence that you’re dealing with a ratbag. In this instance you should immediately send them a Final Demand Letter.

Tags: collection, collection agencies letters, collection demand letter, collection letter, collection letters examples, debt collection letter template, friendly collection letter, letter writing collection agencies, medical collection letters, sample collection letter
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