After all the end-of-the-year madness to hit your collections quotas, tax season may not even be on your radar — but it should be.
It’s estimated that a whopping $307 billion will be refunded this year, according to the most recent filing data from the IRS, with the average refund coming in at $2,781.1 Nearly 72% of individuals will receive a refund, and that means plenty of people will have some extra cash to burn.1 It presents the optimal opportunity for you to collect on debts.
Follow this advice to help ensure you can capitalize on the 2020 tax season.
#1. Don’t wait too long
As with most things in life, timing is everything when it comes to collecting on outstanding debt. In 2019, almost 40% of people filed on or before March 1,2 and nearly 50% filed on or before March 15.3 That means that if you wait until April, it could be too late.
Plus, consumers are more likely to use an influx of cash on debt if you contact them before they actually have it. Provide your team with talking points about how consumers can use their tax refunds to get back on track next year.
#2. Determine whether your consumer data is up to date
Don’t waste time and money calling the wrong numbers or sending letters to outdated addresses. Refresh your consumer data with actionable information before you begin your campaign.
Learn about TransUnion’s rapid, seamless batch transfer process that makes updating your data hassle free, here.
#3. Rescore your population before tax season
To make the most of your efforts, you want to focus on those consumers with a high propensity to pay their outstanding debts. That requires gaining insight on consumer behavior that only trended credit data can provide.
Unlike the point-in-time analysis traditional credit scores offer, trended credit data covers more than 30 months of history, and includes payment history, amounts, balances, and more, to reveal trends and behaviors that provide a better understanding of consumers’ ability to pay.
With TransUnion CreditVision® Recovery Score, you can ensure you are working with the most up-to-date scores and pinpoint the accounts who are more likely to pay.
Need some proof? Learn how one accounts receivable organization (ARO) generated $148,500 in revenue by rescoring older, idle accounts with CreditVision Recovery Score.
If you’d like more information, complete the form below or visit the TransUnion Recovery Score page.
1. Compiled from “Filing Season Statistics for Week Ending October 18, 2019.” U.S. Internal Revenue Service, October 18, 2019. https://www.irs.gov/newsroom/filing-season-statistics-for-week-ending-october-18-2019.
2. “Filing Season Statistics for Week Ending March 1, 2019.” U.S. Internal Revenue Service, March 1, 2019. https://www.irs.gov/newsroom/filing-season-statistics-for-week-ending-march-15-2019.
3. “Filing Season Statistics for Week Ending March 15, 2019.” U.S. Internal Revenue Service, March 15, 2019. https://www.irs.gov/newsroom/filing-season-statistics-for-week-ending-march-15-2019.