In the spring of 2017, the IRS will begin outsourcing the collection of not all, but some, overdue federal tax debts to private contractors. In early December of 2015, President Obama signed into law the Fixing America’s Surface Transportation Act, or “FAST Act.” The FAST Act provides funding for transportation project over the next ten years. Of course, any bill related to highways is likely to include provisions requiring the IRS to use private debt collection companies, which this bill, in fact, includes.
This legislation authorizes $305 billion over the fiscal years 2016 through 2020 for highway programs affecting highway and motor vehicle safety, public transportation, motor carrier safety, hazardous materials safety, rail, and research, technology, and statistics.
The FAST Act allows designated contractors to collect outstanding inactive tax receivables on the government’s behalf. As a condition of receiving this contract, these agencies must respect taxpayer rights and observe the consumer protection provisions of the Fair Debt Collection Practices Act.
The companies 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 four agencies will collect only for accounts where the IRS is no longer actively seeking collection, but some amount is past due. There are several factors involved in the assignment of the IRS of these accounts to private collection agents, such as whether the account is especially old and overdue, and the IRS’s lack of resources to collect the amount due on the account.
The IRS will send delinquent taxpayers written notice that their account is being transferred to a private collection agency. The private collection agent will then send a second, separate letter to the taxpayer to confirm this transfer, and may identify itself as a contractor of the IRS. Private collection agencies will never (should never) ask for payment on a prepaid debit card. Payment by check should be payable to the U.S. Treasury and always sent directly to IRS, not the private collection agency.
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. 
