Seriously tax-delinquent clients may soon hear from someone new.
The Internal Revenue Service has awarded contracts to three private collection agencies for collection of overdue tax debts. The new contracts begin Thursday, Sept. 23, when old collection-agency contracts expire.
The three agencies are:
- CBE Group Inc., PO Box 2217, Waterloo, Iowa, 50704; (800) 910-5837;
- Coast Professional Inc., PO Box 526, Albion, New York, 14411; (888) 928-0510; and,
- ConServe, PO Box 307, Fairport, New York, 14450; (844) 853-4875.
The IRS stressed that it always notify a taxpayer before transferring their account to a collection agency. First, the service will send a letter to the taxpayer and their tax rep informing them that their account was assigned to a collection agency and giving the name and contact information for the agency.
This mailing will include a copy of Publication 4518, “What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency.”
The agency will then send its own letter to the taxpayer and their representative confirming the account transfer. The collectors will identify themselves as contractors collecting taxes on behalf of the IRS.
Clients may need reminders that private firms can’t take enforcement actions against taxpayers. The collection agencies can discuss payment options, including setting up payment agreements with taxpayers. Any tax payment must go directly to the IRS.