Private Debt Collectors?

Private Debt Collection

Who are these people???

The first thing that happens is the IRS sends you a letter stating that your Tax Debt has been assigned to a Private Collection Agency.  But… you probably are not opening mail from the IRS at this point.

Next, the private collection agency (PCA) sends you a letter.  But, (if you open the letter) you probably think this is a scam because it isn’t from the IRS.

Now the phone calls begin.  More mail arrives. 

Is this legitimate?

Yes, IRS the has contracted with Private Collection Agencies in an effort to increase revenue.  This outsourcing is the result of the FAST Act signed into law by President Obama on December 4th, 2015.  The IRS has done this before.  During three years back in the mid-2000s the IRS used private debt collectors.

Here are the current Private Collection Agencies the IRS is using:

  1. CBE. P.O. Box 2217. Waterloo, IA 50704. 800-910-5837.
  2. ConServe. P.O. Box 307. Fairport, NY 14450. 844-853-4875.
  3. Performant. P.O. Box 9045. Pleasanton, CA 94566. 844-807-9367.
  4. Pioneer. PO Box 500. Horseheads, NY 14845. 800-448-3531.

Why did the IRS send my account to a Private Collection Agency?

The IRS seems to be sending out small dollar cases, that are older.  These are cases that the IRS simply does not have the workforce to pursue. 

What can the PCA do?

There only a few things the PCA can do when assigned a case from the IRS.  They can call. They can mail letters. They can accept full payment. They can setup installment agreements.

The PCAs cannot do things like, abate penalties, offer-in-compromises or place the account in Currently Not Collectible status.  In order for these things to happen the case must be returned to the IRS.

How to I get my case returned to the IRS?

The process to get your case send back to the IRS is to write a letter to the PCA requesting such.  The PCA is required by the IRS to return a case when properly asked to do so.  Bear in mind, this is not a quick process.  Expect it to take at least 8 weeks for this to happen.

Are you being hounded by one of these relentless Collection Agencies?  Give me a call today, I can help.

Jeff Roltgen, Tax Rescue CPA

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