IRS Private Debt Collectors

Beginning this month the IRS is going to begin using private companies to collect debt. The IRS will assign taxpayer accounts to one of four private companies. The companies are:

  1. CBE Group – Cedar Falls, Iowa
  2. Conserve – Fairport, N.Y.
  3. Performant – Livermore, California
  4. Pioneer – Horseheads, N.Y.

Reportedly, the IRS will only assign taxpayer accounts to private collectors after multiple attempts to collect. The IRS describes the process as follows.

The IRS will always notify a taxpayer before transferring their account to a private collection agency (PCA). First, the IRS will send a letter to the taxpayer and their tax representative informing them that their account is being assigned to a PCA and giving the name and contact information for the PCA. This mailing will include a copy of Publication 4518, What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency.

If you owe the IRS and you have not been responsive to collection efforts, you may want to be on the lookout for this correspondence from the IRS. Even if you don’t owe the IRS, you should be alert. Remember that a common scam is when someone impersonates the IRS or other official. This adds a new potential wrinkle. Scammers can now claim to be private collectors representing the IRS. In the past, this would have been an obvious red flag.

As always, if you have any doubts about tax-related correspondence, you should contact a professional. If you receive an unsolicited call or mail, do not give out personal information. Do not agree to anything, and do not provide banking or financial information. If you receive a suspicious letter, be sure to check it out using known addresses and telephone numbers before you respond.

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