The Internal Revenue Service awarded contracts to three collections companies. These private collection agencies (PCA) are CBE Group, Inc., Coast Professional, Inc. and ConServe. One of the three companies will contact taxpayers with unpaid IRS bills; however, the IRS will always notify taxpayers when transferring accounts to these private collection agencies.
The transfer procedure
There are specific steps that will occur during this process:
- The IRS will send a letter to the taxpayer or their representative informing them that the agency assigned the account to a PCA. It also includes directions on what the taxpayer can expect and how to address the matter best.
- The PCA will then send its’ letter to confirm the account transfer with its directions on how to handle this matter.
Both letters contain important information regarding the amount owed. They also validate that PSA’s payment request and future contact in handling the matter.
What PSAs do
These companies must follow the rules outlined in the Fair Debt Collection Practices Act. As with IRS employees, the PSA representatives must be courteous at all times and respect the taxpayer’s rights. Their job is to collect a payment, not to take enforcement actions against the taxpayer – only the IRS can issue a levy or Federal Tax Lien. If the taxpayer does not want to work with the specific agency assigned to them, they can request a different one.
The payment options
The collections companies are authorized to discuss payment options with taxpayers, but all payments are made directly to the IRS or U.S. Treasury. Checks should be made out to the latter. Taxpayers should immediately report anyone who requests payments sent to another entity besides the Treasury.
Paying taxes can be complex. If the taxpayer believes that the amount due is incorrect or unfair, they can take action with the help of an attorney that handles tax law and disputes. These legal professionals can help with creative and unique solutions that fairly and equitably resolve these matters.