What Goes into a Tax Season Debt Collection Strategy?

  • October 21, 2022
  • Posted by: Taurus Collections
  • Category: Blog
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Tax Season Debt Collection Strategy

Tax season is known as winter holidays in collections. It is considered the busiest time of the year to pay off debts. However, it is also a great time to recover debts from overdue accounts. People become more aware of spending their money wisely with increased cash flow due to their tax returns. Customers with past-due accounts use income tax refund amounts to settle late bills, resulting in higher collection rates.

This is one of the significant reasons you should not leave any opportunity to receive successful collections. However, it is recommended to take the assistance of a professional debt collection agency in town to ensure successful collections. 

What are the Workings of Tax Season Debt Collection Strategy?

A robust tax-collection strategy is typically based on the awareness that approximately 35 percent of debtors receiving refunds plan to repay their debts by using those funds. Do you want to know how? Read on to find out:

Preparedness 

The key to successful tax season strategies begins with the foundation of compliance, data protection, certification, and collection technology. 

Most savvy collection agency leaders will always have a plan before tax season that includes proper training and staffing to handle greater call center volume.

Therefore, it is advised to consult a professional debt collection company to ensure that they have the right training to ensure compliance and handle negotiations in your best interests. 

Timing and Modification

An efficient tax-season debt collection strategy involves an upsurge of efforts. This should begin in quarter four of the previous year and extend well into quarter one and into quarter two of the successive year.

During fall, the early stage of collection strategies involves only discussing tax refunds if and when debtors introduce them. Similarly, your debt collector will stress the importance of beginning a repayment plan in November and December to prevent you from taking on additional debts. 

Therefore, it is better to take the help of a reputed debt collection company to perform strategic predictive analysis and make real-time adjustments to large segments or individual accounts. 

Flexibility

Most top-performing debt-collecting agencies make it convenient for their client’s debtors’ to address their debts by accepting all payments. This can include cash, credit/debit card, cheque, and ACH by ensuring the right procedures to authorize, secure, monitor and process all transactions. Thus, while selecting the most appropriate debt collector for your business, ensure picking the one that should offer versatile payment options and accept them via mail or phone. 

Remember that flexibility is elevated by the ability to adjust personnel, segments, and individual accounts. 

About Us

At Taurus Collections (UK) Ltd., we practice straightforward techniques to help our clients with certain debt collection services. Our services include:

Use our Late Payment Calculator to compute your outstanding credit amount. Speak to us at 01332 565 350 (Derby) or 0800 069 8777 or email us at enquiries@tauruscollections.com. Stay tuned on Facebook, Instagram, and Twitter.