IRS hires Private Collection Agencies to collect unpaid taxes
WASHINGTON – The Internal Revenue Service (“IRS”) announced on September 26, 2016 that it plans to begin private collection of certain overdue federal tax debts next spring and has selected four contractors to implement the new program. The new program, authorized under a federal law enacted by Congress in December, 2015, enables these contractors to collect on the IRS’s behalf, outstanding inactive tax receivables. As a condition of receiving a contract, these agencies must respect taxpayer rights including, among other things, abiding by the consumer protection provisions of the Fair Debt Collection Practices Act. The IRS has selected the following contractors for the assignment:
1- CBE Group
1309 Technology Pkwy
Cedar Falls, IA 50613
200 CrossKeys Office park
Fairport, NY 14450
333 N Canyons Pkwy
Livermore, CA 94551
325 Daniel Zenker Dr
Horseheads, NY 14845
These collection agencies will work on accounts where taxpayers owe money, but the IRS is no longer actively working their accounts. Several factors contribute to the IRS assigning these accounts to private collection agencies, including older, overdue tax accounts or lack of resources preventing the IRS from collection effort.
The IRS will give each taxpayer and their representative written notice that their account is being transferred to a private collection agency. The agency will then send a second, separate letter to the taxpayer and their representative confirming this transfer. Private collection agencies will be able to identify themselves as contractors of the IRS collecting taxes. Employees of these collection agencies must follow the provisions of the Fair Debt Collection Practices Act and must be courteous and respect taxpayer rights.
The IRS will do everything it can to help taxpayers avoid confusion and understand their rights and tax responsibilities, particularly in light of continual phone scams where callers impersonate IRS agents and request immediate payment. Private collection agencies will not ask for payment on a prepaid debit card. Taxpayers will be informed about electronic payment options for taxpayers on IRS.gov/Pay Your Tax Bill. Payment by check should be payable to the U.S. Treasury and sent directly to IRS and not these private collection agencies.
Zaher Fallahi, Tax Attorney, CPA, advises taxpayers with their IRS representation, disclosing undeclared foreign bank accounts; Offshore Voluntary Disclosure Program (OVDP), Report of Foreign Bank & Financial Accounts (FBAR), Foreign Account Tax Compliance Act (FATCA). Telephones: (310) 719-1040 (Los Angeles), ( 714) 546-4272 (Orange County) or e-mail [email protected]