Warning: This is not a collections technique for the faint of heart.  If you’ve run into a brick wall when it comes to collecting your money from a particular account there’s one collector you may not have tried: IRS.  After all, an outstanding balance is a loss – and one that IRS will view as reportable income to the debtor.

Remind customers of that and you’d be amazed how those checks roll in, says credit-manager-turnedconsultant Ben Ricci. you’ll issue a... read more

Debt Collection Adviser Employs
IRS as Silent Partner
By Warren Rojas — wrojas@tax.org

An Arizona collections consultant has devised a
way to let the IRS do his dirty work, urging small
businesses with delinquent clients to alert debtors
about their potential audit risk if the businesses
write off the debts as uncollectible.

The unorthodox debt recovery strategy has
helped Ben Ricci, president and founder of the
credit management firm Stevens & Ricci Inc., sell
hundreds of copies of his ‘‘IRS Advantage’’ system
(available at http://www.irscollect.com) — a product
he claims has received the blessing of both the
IRS and the Treasury Inspector General for Tax
Administration — over the...read more.

How The IRS Can Help You Collect Money From Overdue Customers.

The Problem
Customers who refuse to pay or deliberately slow pay.

The Solution
The IRS Collection Strategy.

The Strategy & Why it Works
This collection strategy works on the premise of reporting the debt as a loss, which will cause the IRS to view it as income to the debtor. It’s well known that the IRS routinely runs computer matches of 1099s against tax filings.

Once your debtor realizes the IRS could be examining their tax statement a little more closely, you will be surprised how quickly a check can arrive...read more

There Is No Substitute for Innovation

When you think of a collection agency, “innovation” might not be the first word that comes to mind, but for Ben Ricci, co-founder and CEO of Tucson, Arizona-based Stevens & Ricci, it’s been the key the company’s success.

Ricci, whose background is in corporate credit management, started the firm in 1998 with partner Mitch Stevens. They immediately experienced what Ricci calls “hockey stick” growth, reaching $1.5 million in revenues within two years. However, like many companies, their fortunes suffered after 9/11. “We were heavily...read more