Private Debt Collection Contract Update
On March 5, 2009, the Internal Revenue Service (IRS) announced that it would not be renewing contracts with two private debt collection agencies working with the IRS Private Debt Collection (PDC) program. The IRS determined that the work is best done by IRS employees who have more flexibility handling cases, which is particularly important with many taxpayers currently facing economic hardship.
The two private collection agencies (PCAs) whose contracts were impacted by this decision are: The CBE Group, Inc., and Pioneer Credit Recovery, Inc. All taxpayer accounts currently assigned to these collection agencies are in the process of being returned to the IRS for review and processing. The account return process began on March 19, 2009, and is expected to continue over the next several months.
Frequently Asked Questions about the Return of Taxpayer Accounts to the IRS
How will the IRS ensure the protection of taxpayer rights and privacy of taxpayer information for the accounts being recalled from the Private Collection Agencies?
The IRS is closely monitoring the return of account information to protect taxpayer privacy and to ensure the proper handling and disposal of taxpayer information. The protection of taxpayer privacy and taxpayer rights during this process is of the utmost concern to the IRS. Procedures and safeguards have been established to ensure that taxpayer rights are protected and sensitive information is not compromised during the return of accounts from the collection agencies back to the IRS.
What will happen to the taxpayer accounts being returned from the Private Collection Agencies?
Letters will be issued to taxpayers by the collection agencies as accounts are returned. These letters will inform taxpayers that their account has been returned to the IRS. After the return of all account material, the collection agencies will permanently remove all taxpayer data from their facilities and computer systems. No action is required by the taxpayer. Accounts returned from the collection agencies will be reviewed by the IRS to determine appropriate account processing actions. Taxpayers granted installment agreements with the collection agencies will have those installment agreements transferred to the IRS for monitoring.
How will this transition impact my account?
The IRS is in the process of recalling all accounts assigned through the PDC program. Until you receive a letter from the collection agency advising you of the return of your account to the IRS, you may continue to work with the collection agency or opt to work directly with the Internal Revenue Service to resolve your account. If you choose not to work with the collection agency, you should state this in writing and mail this correspondence to the applicable collection agency at the address listed below.
What if a Collection Agency offered me an installment agreement?
If you entered into an approved installment agreement with one of the collection agencies, the terms of that agreement are still valid. Within the next several months you will receive correspondence from the collection agency advising you that your account has been returned to the IRS. Within 4 to 6 weeks of receiving the letter from the collection agency you will receive correspondence directly from the IRS reaffirming the terms of the agreement and providing additional instructions for future payments. Until you receive such correspondence from the IRS, continue to make your installment payments through one of the payment methods provided below.
I’ve received a letter notifying me that my account has been returned to the IRS. What does this mean, and am I required to do anything?
The letter was issued to inform you that your account was part of the Private Debt Collection program and that it has been returned to the IRS. Taxpayers do not need to take any action to recall their cases from the private collection agencies.
What should I do if the Collection Agency continues to contact me?
Until accounts are returned to the IRS, the collection agencies will continue to work with taxpayers to resolve their accounts. In the event that a collection agency affiliated with the PDC program (or any other collection agency purporting to be representing the IRS in a tax collection matter) continues to contact you after you receive a letter notifying you that your account has been returned to the IRS, please notify the IRS immediately by calling (866) 805-0024.
Are the Collection Agencies allowed to keep taxpayer data after the end of the program?
No. IRS contracts with the collections agencies call for an orderly return of any and all outstanding accounts and account files to the IRS at the conclusion of the contracts. After the return of all account material, the collection agencies will permanently remove all taxpayer data from their facilities and computer systems.
Who can I contact for more information about my account, or to report a concern?
The IRS is committed to providing top quality service to each taxpayer. General questions or inquiries may be directed to the IRS toll free at: (800) 829-1040. Taxpayers with questions or concerns about their accounts assigned to a collection agency may call (866) 805-0024. Questions about the PDC program may be directed via email to PDC@irs.gov.
In addition, should any taxpayer have a concern at any point in the collection or account return process, they may contact the IRS Taxpayer Advocate Service (TAS) toll free at: (877) 275-8271. More information on TAS can be found at the IRS Taxpayer Advocate Service.
Taxpayer Safeguards and the Protecting of Taxpayer Information
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.
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.
How do I know if my account was assigned to a private collection agency (PCA)?
When a taxpayer account was assigned to one of these agencies, the taxpayer would have received a notification letter from the IRS advising them of the agency to which their account was assigned. Letters were mailed to the address of record the IRS had on file for the taxpayer at the time the account was assigned. The private collection agency also sent their own letter to the taxpayer explaining the collection process and their rights as a taxpayer throughout the process.
How do I verify that the private collection agency (PCA) that contacted me is real?
There are currently two PCAs 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 14530-0050
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 is 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. 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, 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 an automated survey system. 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 a PCA.
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