On Wednesday, the Internal Revenue Service (IRS) announced that it had awarded new contracts to three private-sector collection agencies. These agencies will assist in collecting overdue tax debts beginning September 23, 2021.
Moving forward, delinquent taxpayers may be contacted by one of the following three agencies:
CBE Group, Inc.
Coast Professional, Inc.
IRS and Private Collection Agency Notification
Taxpayers will always receive notification from the IRS before their account is transferred to a private collection agency (PCA).
- IRS Assignment Notification. The IRS will send delinquent taxpayers and their tax representatives a letter informing them that their account was assigned to a PCA. This letter will provide the name and contact information for the PCA. It will also include a copy of Publication 4518, What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency.
- PCA Account Transfer Notice. Following IRS assignment notification, the PCA assigned to the taxpayer’s case will send its own letter confirming the account transfer. To protect the taxpayer’s privacy and security, both the IRS letter and PCA’s letter will contain information that will help taxpayers identify the tax amount owed and provide assurance that future collection agency calls are legitimate.
The Private Collection Agency Process
Private collection agencies working with the IRS should always identify themselves as contractors collecting taxes on behalf of the IRS. Employees of these agencies must follow the provisions of the Fair Debt Collection Practices Act, and like IRS employees, must be courteous and must respect taxpayer rights. They are allowed to discuss payment options, such as setting up payment plans, but are not authorized to take enforcement actions against taxpayers. Only the IRS can file a notice of Federal Tax Lien or issue a levy. In addition, any tax payments must be made directly to the IRS and not the private collection agency. Checks should only be made out to the United States Treasury. To learn more about the private debt collection program, visit the Private Debt Collection page at IRS.gov.
Need Helping Paying Your Back Taxes?
If you need assistance paying your back taxes, don’t wait for one of the private collection agencies to send you a letter. Contact Tax Defense Network now and explore your options. Our experienced tax professionals can help you work out an affordable payment plan with the IRS or determine if you may be eligible for one of the many Fresh Start programs. Call 855-476-6920 for a free consultation today!