Collection Agency Launches New IRS-Aided Collection Program

Stevens & Ricci, Inc. launched a new website today that shows small business owners how to leverage the power of the IRS to collect even the most delinquent accounts. The new website is http://www.irscollect.com/. The IRS Advantage© Collection System is a new product from credit management firm Stevens & Ricci, Inc.

“Somebody’s got to draw a line in the sand when it comes to debt,” says Ben Ricci, president of Stevens & Ricci. “We think we’ve done it with the IRS Advantage© Collection System.” Ricci says his strategy effectively “turns the IRS loose to do the dirty work of debt collection. In a roundabout way, the IRS becomes your partner in collecting even the most difficult accounts,” he says.

“Our approach to debt collection is to use the already-existing pressure points in the tax code,” says Ricci, whose strategy operates on the premise of reporting bad debt as a loss. “This could cause the IRS to view the delinquent debt as income to the debtor,” he says. “And, it’s a well-known fact that the IRS routinely runs computer matches of 1099s.”

Ricci says debtors soon realize that all this maneuvering can trigger a closer examination by the IRS. “They understand quickly that this could lead to an audit. And what business wants that?” he asks.

“At this point the [debtor] gives up, reaches into his pocket and pays up,” says Ricci. "Attracting the attention of the IRS simply isn’t worth it to him.”

Ricci, who claims more than two-thirds of all businesses carry delinquent accounts, says his company’s proprietary debt collection system succeeds because it combines accounting principles with debtor psychology.