The IRS announced in late September that it plans to begin private collection of certain overdue federal tax debts next spring and four contractors have been selected to help implement the program. Authorized by a federal law enacted by Congress last December, this new program will enable these contractors to collect outstanding inactive receivables on the government’s behalf. Here’s a quick look at how these changes may affect you, the taxpayer.
The Contractors
Four contractors have been selected to help the IRS implement this new program. These include:
CBE Group
1309 Technology Pkwy
Cedar Falls, IA 50613
Conserve
200 CrossKeys Office park
Fairport, NY 14450
Performant
333 N Canyons Pkwy
Livermore, CA 94551
Pioneer
325 Daniel Zenker Dr
Horseheads, NY 14845
Rest assured that these agencies are required to respect taxpayer rights, including abiding by the consumer protection provisions of the Fair Debt Collection Practices Act.
Program Details
In situations in which a taxpayer owes money to the IRS, but the IRS is no longer actively working on their accounts, the account may be transferred to one of these private agencies. Contributing factors for being assigned to a third party agency include: older, overdue tax accounts, or lack of resources preventing the IRS from working the cases.
Should your account be transferred to a private collection agency, you will receive written notification from the IRS. You will then receive a second letter from the assigned agency to confirm this transfer. These private agencies will identify themselves as contractors of the IRS who have been assigned to collect taxes. (Be sure to refer to the list of contractors above if you receive a letter from a private agency to ensure they are a qualified contractor.)
The IRS is available to answer questions and help taxpayers avoid confusion during this transition – particularly in light of phone scams from individuals claiming to be IRS agents who may try to request immediate payment. Check out the IRS’s Tax Scams and Consumer Alerts page for information on how to protect yourself from fraud. Remember: If you receive a call or letter from a contractor who is not on the approved list, please contact the IRS immediately.
Keep in mind that private collection agencies will never ask for payment on a prepaid debit card. Information about electronic payment options can be found on irs.gov/payments. Payment by check should be made payable to the US Treasury and sent directly to the IRS, not to the private collection agency.
For more information on these upcoming changes, please refer to IRS.gov.
Changes can be confusing – but fortunately we’re here to lend a hand. Be sure to browse our services page and fill out the form for a free consultation. Or give us a call at 844-841-9857!