Private collection agencies are now working for the IRS. In fact, for some hard to collect bills, the law now requires—rather than just permits—the IRS to use private collectors. Many people think that having the IRS farm out collection work to private contractors is a bad idea.  Here are 10 things you should know:

The IRS can deny and/or revoke passports. This is new ground in tax enforcement for the IRS.  It will make it harder for taxpayers with serious tax problems to flee the country. However, we think Congress was far more concerned with getting a delinquent taxpayer's attention. Here's why:

What to do when the IRS comes to collect.

Social Security benefits are eligible for levy by the IRS.

If you withdraw money from your individual retirement account before age 59 1/2, you will generally have to pay a 10 percent early withdrawal penalty in addition to income tax on the amount withdrawn. This means a $5,000 withdrawal taken by a mid-career worker in the 25 percent tax bracket would result in $1,750 in taxes and penalties. But there are a variety of ways to avoid the IRA early withdrawal penalty if you meet specific criteria:

There is a way to make tax liens disappear from your credit reports completely, and quickly, though. Unfortunately, not all taxpayers who are dealing with this problem know about it.

An offer in compromise allows you to settle your tax debt for less than the full amount you owe.