Introduction
The American Jobs Act of 2004 allows the Internal Revenue Service (IRS) to use private collection agencies (PCAs) as an additional resource to help collect delinquent federal taxes. These agencies assist the Service in reducing the growing number of uncollected tax liabilities while allowing the IRS to better focus on the more complex tax cases and issues. Just like the IRS, these agencies are able to contact taxpayers directly to solicit payment of outstanding federal tax liabilities. The first accounts under this program were assigned to the PCAs on September 7, 2006.
Taxpayer Safeguards and the Protecting of Taxpayer Information
This program is designed to eliminate the possibility that a private collection agency (PCA) will engage in any activity that may violate taxpayer rights. The legislative language ensures that each taxpayer receives the same fair treatment from the private collection agencies as they would from the IRS. If a taxpayer believes a PCA has not complied with the laws regarding private debt collection or has not treated them in a professional, fair and courteous manner, they can contact the IRS at (866) 805-0024 to file a complaint.
Should the taxpayer have a concern at any point in the collection process, they may also contact the IRS Taxpayer Advocate Service (TAS) toll free at: (877) ASK-TAS1 ((877) 275-8271). More information on TAS can be found at Taxpayer Advocate Service.
Taxpayers that have had their account assigned to a PCA can also choose to opt out of the program. If a taxpayer would prefer to work directly with the Internal Revenue Service to resolve their account and does not want to work with a PCA, they should state this in writing and mail this correspondence to the applicable PCA at the address listed below.
All contractor personnel working on federal tax cases or who will have access to confidential tax information are subject to a background investigation. These agencies cannot take enforcement actions, such as filing liens, conducting seizures or issuing levies. They cannot work technical issues such as Offers-in-Compromise, tax abatements or make financial hardships determinations. Additionally, they are prohibited from threatening or intimidating taxpayers.
PCAs and their employees are subject to extensive quality control monitoring by the IRS to ensure compliance with taxpayer protections and applicable policies and procedures. This includes “live” monitoring of telephone communications between collection agency employees and taxpayers, reviews of recorded conversations, taxpayer satisfaction surveys, audits of collection agency records, and other periodic reviews of agency performance.
In addition, the IRS specifically monitors collection agency compliance with taxpayer confidentiality requirements and the restrictions on certain conduct contained in Section 1203 of the IRS Structuring and Reform Act of 1998 (RRA 1998). Private collection agencies are required to comply fully with the provisions of laws and regulations that pertain to taxpayer information, including the removal and termination of employees who violate the requirements of these provisions. Confidential tax information shared with the PCAs by the IRS is held in strict confidence and is not used for any other purpose than to collect the applicable federal tax liability.
How do I know if my account is assigned to a private collection agency (PCA)?
When a taxpayer account is assigned to one of these agencies, the taxpayer will receive a notification letter from the IRS advising them of the agency to which they have been assigned. This letter will be mailed to the address of record the IRS has for the taxpayer. The private collection agency will follow-up with their own letter to the taxpayer which explains how the collection process works and their rights as a taxpayer throughout the process. This letter also contains contact information for the PCA and explains the various payment options available.
Should the taxpayer no longer be located at the IRS address of record, they may not receive the above mentioned correspondence. In this instance the taxpayer’s first contact regarding the matter may be a telephone call from the PCA itself. The PCA can then issue another initial contact letter to the taxpayer’s new address.
How do I verify that the private collection agency (PCA) that contacted me is real?
There are currently two PCAs that are authorized to collect federal taxes on behalf of the Internal Revenue Service. The two companies are:
The CBE Group, Inc.
131 Tower Park Drive, Suite 100
PO Box 1800
Waterloo, IA 50704-1800
Toll free: (877) 272-9923
Pioneer Credit Recovery, Inc.
PO Box 50
Perry, NY 14530
Toll free: (866) 394-4511
Should a taxpayer be contacted by one of these two companies with the corresponding return address and phone number, the taxpayer can be assured that the inquiry is legitimate and they can deal with the PCA directly to resolve their tax liability. Only one PCA will receive a given taxpayer’s account so taxpayers will not receive contacts from both PCAs.
Taxpayers can also contact the Internal Revenue Service directly to confirm that their account has been assigned to a PCA. Taxpayers can contact the IRS at: (866) 805-0024.
What information should the taxpayer provide the private collection agency (PCA)?
The PCAs are required to verify they are speaking with the proper person when speaking with the taxpayer over the phone. They have to go through an authentication process each time they speak with the taxpayer. The PCA will ask the taxpayer to verify their name, address, social security number and on occasion their date of birth. If the taxpayer is reluctant to provide the PCA with their social security number, the PCA is authorized to provide the taxpayer with any four digits of the social security number (as chosen by the taxpayer). The taxpayer will then be asked to provide the remaining numbers. If a PCA is unable to authenticate a taxpayer’s identity after repeated attempts, the account will be returned to the Internal Revenue Service for appropriate action.
Once a taxpayer has been authenticated, the PCA may require additional information to effectively work the case, including any updated contact information (phone numbers, addresses, etc.), power of attorney information, and income/expense information when an installment agreement may be the appropriate course of action. The PCA may also ask the taxpayer to mail to the PCA documents that will help substantiate the financial information secured.
How should payments be remitted to the Internal Revenue Service?
Payments are made directly to the Internal Revenue Service and are not sent to the private collection agencies (PCAs). At no time should payment be made or sent to a PCA. Included in the PCA correspondence will be a payment voucher with the appropriate IRS mailing address. Taxpayers assigned to a PCA should use this payment voucher when submitting their remittance. Checks and money orders should be made payable to the “United States Treasury” and include the taxpayer’s social security number (SSN) and tax year(s). Taxpayers should not send cash. Payments should be mailed to:
Internal Revenue Service
PO Box 970032
St Louis, MO 63197-0032
Other payment options include the Electronic Federal Tax Payment System (EFTPS), an IRS sponsored database designed for taxpayers to make federal tax payments. You can schedule one-time or recurring payments through EFTPS, either online or by phone. To use EFTPS, enroll online at EFTPS.gov or call toll free: (800) 555-4477 or (800) 945-8400.
To pay via credit card, call toll-free or visit the website of either service listed below:
Official Payments Corporation
(800) 2PAY-TAX ((800) 272-9829)
(877) 754-4413 (Customer Service)
Link2Gov Corporation
(888) PAY-1040 ((888) 729-1040)
(888) 658-5465 (Customer Service)
Please note that the PCAs are not associated with the above referenced websites.
Customer Satisfaction Survey
The IRS is committed to provide top quality service to each taxpayer. After a taxpayer interacts with a private collection agency (PCA), they may be randomly selected to participate in a brief five minute survey. The feedback provided in this survey is very important to both the IRS and the PCA and will help them improve their services. During the survey, the taxpayer will be asked to rate the service they received from the PCA. If the taxpayer agrees to participate in the voluntary survey, the call will be transferred to the automated survey. The survey is administered independently and all survey responses are anonymous and confidential.
Questions
Questions regarding the private debt collection (PDC) initiative can be sent to PDC@irs.gov. You can download a copy of the current version of Publication 4708, Private Collection Agency (PCA) Policy and Procedure Guide (PDF) or request a free copy by calling toll free (800) TAX-FORM ((800) 829-3676). The guide provides information on how the program works and actions that can be taken by the PCA.
|