In December of 2015 Congress passed a law that allowed for IRS Private Debt Collection Agencies to collect inactive tax receivables. Generally the type of cases that the IRS has turned over to them are cases that have gone dormant. If you get a call from them they have found you where as the IRS didn’t or didn’t even try.
The IRS claims that they are understaffed and underfunded and that is probably true, 90,000 employees isn’t enough. Not to mention the 11,000,000,000 (Billion) Budget. This means that they don’t have the resources to collect all cases.
They approved four and assigned cases to them for collections. Below are the links and to the IRS’s web page on Private Debt Collections
CBE Waterloo, IA 1-800-910-5837
ConServe Fairport, NY 1-844-853-4875
Performant Plesanton, CA 1-844-807-9367
Pioneer Horseheads, NY 1-800-488-3531
You could imagine there would be many complaints about every debt collector. That would be true of the IRS Private Debt Collection Agencies that the IRS has picked as well. With a little research you will find thousands of complaints.
What does this mean?
The IRS has given up on direct collections and chose to let the Private Debt Collectors have a shot. The IRS thinks of this as an investment. They believe that there is a likelihood that no money would be recovered in the normal collections process. By allowing the Private Collections companies to try the IRS has nothing to lose.
What can they do?
Before the assign the case to the Collections Company they first are to send you a notice that they are going to do this. Then the Collections Company is to send you a notice that they are now Collecting an IRS debt.
They are not to ask you to pay anyone except the US Department of Treasury. They will inform you the ways in which you should pay the Treasury directly.
What should I do if I get a call from one of these companies?
First, don’t panic. These IRS Private Debt Collection Agencies have less power than the IRS. There are consumer protection laws that are in place for everyone and these companies must follow them. For that matter the same goes for the IRS. However, both entities break the laws everyday or certainly work in the grey area. The difference is that it’s extremely expensive and hard to sue the IRS but easy to sue the Collections Companies.
Should you get a call from anyone claiming to be collecting for the IRS you should get as much information about them as possible. Then call the IRS or a IRS resolution company, like me, and verify that they are collecting on a legitimate debt. If they are not you can either ignore them or report them. If they are then get the details of what they are collecting. Call the IRS to confirm the information. Make arrangements to pay.
Guess what, you don’t even have to work with them.
If you don’t want to work with them and would rather work directly with the IRS all you have to do is send them a written notice. Of course If you prefer to work with me then I can take care of all of this for you.
Call me you have nothing to lose.
If you get a call from anyone claiming to be collecting for the IRS call me. I can find out whether or not there legit. If their not, I really want to call them. If they are then call me and we can discuss my program to find out about your debt or issues and discuss the possible resolutions. Plus there’s no charge or obligations for this service. Nothing to lose.
Perhaps you would be interested in an IRS article on How to Know if it’s the IRS knocking on Your Door.
Please see my Post about Transcript Monitoring?