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The Internal Revenue Service awarded new contracts to three private sector collection agencies to collect overdue tax debts as of September 23.
The contracts include CBE Group Inc., Coast Professional Inc. and Conserve, according to a IRS press release.
Over the past year, the IRS continued to record an increase in collections under the debt collection program and private collection agencies have reported helping nearly 200,000 taxpayers who have set up a payment plan or paid off their balances in full, ACA International previously reported.
The IRS established the Credit Debt Collection Program in 2016, as authorized by federal law, and has contracts with several agencies to collect certain unpaid tax debts on behalf of the government. Collections began in 2017.
According to the IRS 2020 progress report, “Prioritize taxpayersRevenues have continued to exceed program costs since 2018. The IRS has assigned more than 2.4 million cases to private collection agencies, for a total of more than $ 22.5 billion in outstanding balances, according to The report. The program, which began in 2017, has generated more than $ 301.7 million in revenue.
The IRS notifies taxpayers before transferring their account to a private collection agency (PCA) and provides contact information for the agency and a copy of Publication 4518, What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency.
Each PCA contracted with the IRS also sends a letter to taxpayers and their representatives confirming the account transfer. The IRS and its PCA contractors also provide information that will help taxpayers identify the amount of tax owed and assure taxpayers that future collection agency calls they may receive are legitimate.
PCA contractors discuss payment options and may enter into payment agreements with taxpayers, but any tax payments must be made directly to the IRS.
A provision of the Fixing America’s Surface Transportation (FAST) Act, enacted by President Obama in December 2015, requires the IRS to use private collection agencies to collect “dormant tax debts” or tax debts that the IRS does. has not recovered in the past due to a lack of time or resources, the ACA previously said.
To learn more about the Debt Collection Program, visit the IRS Collection of private debts page.
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