The IRS and Private Collection Agencies
The IRS is required by law to use private agencies to collect some outstanding, inactive tax debts. However, the IRS only uses four private collection agencies to collect these debts. The companies that are currently under contract to assist in the collection of inactive tax debts are listed below.
These companies are the only private collection agencies that are permitted to work with taxpayers to resolve overdue taxes owed to the IRS.
There are a few reasons that the IRS may place your account with a PCA for collection of your unpaid tax liability.
• The IRS was unable to locate you.
• A year has passed and you or your third-party representative have not interacted with the IRS on your account.
• One-third of the collection statute has lapsed and was not assigned for collection.
The IRS will first send you a CP40 Notice along with Publication 4518. These documents explain that your tax account has been assigned to a PCA. The PCA that the IRS assigns to your account will then send an initial contact letter which will explain how to resolve your overdue taxes. All of the letters above will contain a Taxpayer Authentication Number, which is used to verify your identity.
If you have received one of these IRS Notices or currently owe taxes to the IRS or a State Tax agency, please CONTACT US to discuss how we can assist in resolving your tax debt.