Your next collections request might not come from the IRS. That’s because the IRS has implemented a new private collections program for certain overdue federal tax debts. The new program allows four designated contractors to collect outstanding tax debts on the governments behalf.
The program is authorized under a federal law enacted by Congress in late 2015.The four agencies the IRS has chosen for this program are:
1309 Technology Pkwy
Cedar Falls, IA 50163
200 CrossKeys Office Park
Fairport, NY 14450
333 N Canyons Pkwy
Livermore, CA 64551
325 Daniel Zenker Dr
Horseheads, NY 14845
The four agencies must respect taxpayer’s rights. This means, among other things, abiding by the consumer protection provisions of the Fair Debt Collection Practices Act. The accounts the agencies receive are accounts where taxpayers owe money, but the IRS is no longer actively working them. Older, overdue tax accounts are more likely to be assigned to the private collections agencies.
Now if your account is transferred to one of the private collections agencies, the IRS will let you know. You and your representatives will receive a written notice when your account is being transferred. You will then receive a second letter from the assigned agency to confirm this transfer. These private agencies will identify themselves as contractors of the IRS who have been assigned to collect taxes. (Be sure to refer to the list of contractors if you receive a letter from a private agency to ensure they are a qualified contractor.)
As phone scams from individuals claiming to be IRS agents continue to happen, it’s important to be aware of what the IRS will and will not ask for. Keep in mind that the IRS or any of the private collection agencies will never ask for payment on a prepaid debit card, iTunes card, or gift card. You can find out the different ways you can pay by going to the IRS Payment page. You can also check out the IRS’s Tax Scams and Consumer Alerts page for information on how to protect yourself from fraud.
Changes can be confusing – but fortunately we’re here to lend a hand. Be sure to browse our services page and fill out the form for a free consultation. Or give us a call at 844-841-9857!