IRS to Begin Utilizing Private Collection Agencies

The IRS has announced its plans to begin utilizing private collection agencies to assist in collecting on overdue federal tax balances.  The new program has been authorized by a law enacted by Congress in December of 2015.  The IRS states that taxpayer rights will still be protected and accounts being sent to these agencies will receive written notice in advance.   The four contractors the IRS has selected are:

• 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

These private contractors will identify themselves as being contracted by the IRS to collect the taxes.  These companies must still abide by the Fair Debt Collection Practices Act and again, respect taxpayer rights. 
 
A large concern about this is that with rampant phone scams, one may be wary of receiving calls from an agency attempting to collect a tax debt.  The IRS has stated that they will do everything possible to help avoid confusion.
 
Remember that one of the taxpayer rights is your right to a representative.  If you are confused about your tax account and/or the representatives contacting you, it may benefit you to hire professional representation.  Please call Compass Tax Group for a free consultation to see how we can help at 720-420-7996.

​Amy Lee, EA