In September of 2016, the Internal Revenue Service announced that it plans to begin outsourcing the collection of some overdue federal tax debts in the spring of 2017 to private contractors, and has contracted with four collection outfits to implement this new program.
Authorized under a federal law enacted by Congress last December, the new program enables the following designated contractors to collect, on the government’s behalf, outstanding inactive tax receivables. As a condition of receiving this contract, these agencies must respect legal tax defense, which includes observing the consumer protection provisions of the Fair Debt Collection Practices Act.
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 four agents will only attempt collection of accounts where some amount is due, but the IRS is no longer actively seeking collection. There are several factors involved in the assignment of the IRS of these accounts to private collection agencies, including whether the account is especially old and overdue, and the lack of resources on behalf of the IRS to collect the amount due on the account.
The IRS will provide a taxpayer written notice that their account is being transferred to a private collection agency. The agency will send a second, separate letter to the taxpayer to confirm this transfer. A private collector may identify itself as a contractor of the IRS. Its employees must follow the provisions of the Fair Debt Collection Practices Act and respect taxpayer rights.
Private collection agencies will not ask for payment on a prepaid debit card. Payment by check should be payable to the U.S. Treasury and sent directly to IRS, not the private collection agency.
It remains to be seen how this change will affect taxpayers. If you have been contacted by a private collection agency acting on behalf of the IRS, and have any questions related to your tax debt and this collection activity, call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com. For a FREE consultation call 212-490-0704.
