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IRS Resorts to Private Debt Collectors

posted September 30, 2016


IRS Resorts to Private Debt Collectors

The Internal Revenue Service announced that it plans to begin private collection of certain overdue federal tax debts next spring and has selected four contractors to implement the new program.

These private collection agencies will work on accounts where taxpayers owe money, but the IRS is no longer actively working their accounts.  As a condition of receiving a contract, these agencies are required respect taxpayer rights including, among other things, abiding by the consumer protection provisions of the Fair Debt Collection Practices Act.


In light of continual phone scams where callers impersonate IRS agents and request immediate payment, DO NOT give any information via telephone to persons claiming to work with or be the IRS. Private collection agencies will not ask for payment on a prepaid debit card. Taxpayers will be informed about electronic payment options for taxpayers on Your Tax Bill. Payment by check should be payable to the U.S. Treasury and sent directly to IRS, not the private collection agency.

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