100+ Years of Combined Tax Resolution Experience.
The IRS reactivated a program last year that outsourced private collection companies to collect on unpaid taxes from taxpayers with delinquent balances. The new program allows four designated contractors to collect outstanding tax liabilities on the governments behalf. The companies will get a percentage of the tax balances they are able to collect on.
The four agencies in the tax collection program are: CBE group out of Iowa, ConServe out of New York, Performant out of California and Pioneer out of New York. If your account is transferred to one of the 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.)
The percentage paid to the four companies are being kept a secret and chances are they will be kept secret. What we do know is the percentages vary depending on the size of the account. The IRS is allowed to keep the percentage a secret due to the holdings in Scott A. Hodes v Internal Revenue Service and United States Department of Treasury. The IRS did release the categories but redacted the percentages.
The four agencies are required to respect taxpayer’s rights and abide by the consumer protection provisions of the FDCP 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. The IRS is going to notify you when your account is transferred to a collection agency.
We’re in an era in which more small businesses are launching like wildfire. Many people find starting a small business of their own as easy as a piece of cake. However, most of the time, what they fail to prioritize are some of the major players involved in smoothly operating their small business. A...
Do you know why most married taxpayers go for filing joint tax returns? It’s actually because of the benefits that it offers. But with joint tax returns, both the filers hold the responsibility for the tax bill or any penalties and interest that arise from it. Both are legally responsible for the entire liability, even...
What if you owe so much in taxes that you can’t see your way out of it? If you owe back taxes, you might not think there is a way you can ever pay things off. And the more those back taxes have accumulated, the deeper the hole. But that doesn’t mean you can’t dig...
Tax Audits are one of the most terrifying things a taxpayer can endure. Most taxpayers don’t know what being audited by the IRS entails and usually don’t know what to do if they are audited. IRS audits can be confusing to most taxpayers as most don’t know what the IRS is looking for when they...
Receiving a letter from the IRS can be intimidating, especially if you’re unsure what the notice is for or what to do next. Fortunately, many notices are nothing to worry about and are purely informative. Below, we look at everything you need to do — and what not to do — after getting a notice from the...
The Internal Revenue Service (IRS) is increasing audits on cannabis businesses — the agency is on a mission to ensure that cannabis businesses adhere to the tax code. Unfortunately, cannabis companies must comply with more strict tax laws than other businesses and can claim fewer deductions. Most business owners don’t realize this or aren’t able to meet the reporting responsibilities on their own. If you own a business in...