Pursuant to federal legislation enacted by Congress in 2015, the IRS announced today that it will begin collecting unpaid taxes through private collection agencies. Specifically, the IRS has announced that it will be contracting with the following companies for collection purposes:
- 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 Drive, Horseheads, NY 14845
Unlike the IRS, these private collection agencies must comply with the Federal Debt Collection Practices Act, which limits what actions can be taken when trying to collect a debt. Additionally, the IRS will be sending notices to taxpayers that their account is being turned over to a private collection agency.
The IRS has previously taken great effort to warn taxpayers about scams from third-party agencies seeking to collect tax payments, so the new announcement is likely to create some confusion to taxpayers down the road. To be clear, these new private collection agencies will direct all taxpayer payments to be made to the U.S. Treasury or through IRS.gov, not on a prepaid debit card as is typical amongst scammers.
To learn more about whether your account may be transferred to a private collection agency or other IRS-related issues, please contact Matt Malcolm at (812) 423-3183 or mmalcolm@KDDK.com.
About the Author
Matthew D. Malcolm, an attorney at Kahn, Dees, Donovan & Kahn, LLP, in Evansville, Indiana, practices business law, tax law, real estate law, economic development law, creditors’ rights law, bankruptcy law, and debt collection law in the State of Indiana. Focusing on results, he is interested in meeting each client’s needs and providing quality counsel. Matt blends his business background with his legal knowledge. In doing so, he provides legal analysis and counsels his clients on the business and financial implications of a client’s legal options.