Advice, Preparation . . . Results™

Think your unpaid income taxes are forgotten? Think again! (Part 1 of 2)

Budget cuts keep the IRS understaffed and unable to complete all the tasks expected of them – such as following up on long-overdue individual tax payments. If you’re wondering why you’ve yet to hear anything recently about your unpaid debt, now you know!

Nearly 19 million people owe the government more than $400 billion. As a result, Congress passed legislation last December requiring the IRS to outsource long-term debt to private debt collection agencies. Beginning next spring, expect a reminder of any overdue tax obligations.

Using private agencies to collect back taxes was tried twice before and abandoned. The programs weren’t cost-effective and the way debt collectors treated taxpayers and their private information drew concern.

Is the third time the charm? The IRS faces new challenges in implementation this time, such as security hacks and imposters claiming they’re IRS agents.  The most recent scheme of the imposters involves mailing or emailing a fake tax bill.  How will taxpayers know if collection efforts are legitimate?

The IRS has already selected four contractors to implement the program:

  • CBE Group, 1309 Technology Parkway, Cedar Falls, IA 50613
  • Conserve, 200 CrossKeys Office Park, Fairport, NY 14450
  • Performant, 333 N. Canyons Parkway, Livermore, CA 94551
  • Pioneer, 325 Daniel Zenker Drive, Horseheads, NY 14845

Disregard collections notices from any other agencies.

Prior to one of the agencies actively working on collecting your back taxes, you’ll receive two letters; one from the IRS notifying you of your debt transferring to a collection agency and the second from one of the agencies confirming the transfer.

Agency employees must abide by the provisions of the Fair Debt Collection Practices Act, which includes showing you courtesy and respecting your rights. Agents must tell you about payment options and never demand you pay by prepaid debit card. You must pay directly to the IRS; not the debt collector.

For your financial planning needs and to avoid missing tax payments in the first place, contact us here at Patrick & Robinson CPAs. Be sure to watch for part two of this series explaining how the IRS determines whom to transfer to agency collections.

Reach us at or 904-396-5400.

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