Home News Wait, the IRS might call me about my tax debit?

Wait, the IRS might call me about my tax debit?

After warning tax payers that the IRS will never call you to collect a tax debt, the IRS has began handing over some of it’s debt collection work to private collection agencies that may call you.

“The Internal Revenue Service plans to begin private collection of certain overdue federal tax debts as early as spring of 2017 and has selected four contractors to implement the new program,” the IRS said in a press release.

The new program, authorized under a federal law enacted by Congress last December, enables these designated contractors to collect, on the government’s behalf, outstanding inactive tax receivables. Authorized under a federal law enacted by Congress in December 2015.

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

Several factors contribute to the IRS assigning these accounts to private collection agencies, including older, overdue tax accounts or lack of resources preventing the IRS from working the cases.

The IRS said it would give taxpayers and their representative written notice that the accounts are being transferred to the private collection agencies. The agencies will send a second, separate letter to the taxpayer and their representative confirming this transfer.

The private collection agencies selected include Conserve of Fairport, New York; Pioneer of Horseheads, New York; Performant of

Livermore, California; and CBE Group of Cedar Falls, Iowa.

“These private collection agencies will be able to identify themselves as contractors of the IRS collecting taxes. Employees of these collection agencies must follow provisions of the Fair Debt Collection Practices Act and should be courteous and respect taxpayer rights,” the Agency said.

However, if you do not wish to work with the assigned private collection agency to settle your overdue tax account, you must submit a request in writing to the private collection agency.

The IRS stated that it would do everything it can to help taxpayers avoid confusion and understand their rights and tax responsibilities, particularly in light of continual phone scams where callers impersonate IRS agents and request immediate payment.

“Private collection agencies will not ask for payment on a prepaid debit card. Payment by check should be payable to the U.S. Treasury and sent directly to IRS, not the private collection agency,” said the Agency. ”Taxpayers will be informed about electronic payment options for taxpayers on IRS.gov/Pay Your Tax Bill.”

Even with private debt collection, you shouldn’t receive unexpected phone calls from the IRS demanding payment.

“When people owe tax, the IRS always sends several collection notices through the mail before making phone calls,” the Agency said. The IRS stated that it would not assign accounts to private collection agencies involving tax payers that are deceased, under the age of 18, in designated combat zones, victims of tax-related identity theft, currently under examination, litigation, criminal investigation or levy, subject to pending or active offers in compromise, subject to an installment agreement, subject to a right of appeal, classified as innocent spouse cases, and in presidentially declared disaster areas and requesting relief from collection.

To make a complaint about a private collection agency or report misconduct by its employee, call the TIGTA hotline at 800-366-4484 or visit www.tigta.gov.

Recent News

The great rubber ducky race!

Jim Davison Memorial Rubber Duckie Race got underway on the Sacramento River in Colusa on a beautiful Fourth of July holiday. Rubber ducks floated...

County residents urged to wear masks, keep distance

With Gov. Gavin Newsom launching his massive “Wear a Mask” public awareness campaign, funded largely by the Chan Zuckerberg Initiative (Facebook), Colusa County Public...

4th of July fireworks cancelled

On Monday, Colusa County Fair CEO, Laura Ford, announced in partnership with the Colusa Flare Committee, “that due to the COVID-19 pandemic the annual...

Residents peruse art at outdoor exhibit

The high heat or fear of COVID-19 didn’t stop local residents from enjoying the Art Walk in Colusa, on Friday. The outdoor event on Fifth...

Farm Fresh at the Arbuckle Market

The Arbuckle Farmers Market opened to a large reception on Wednesday, with many staying to chat with neighbors. Produce, nuts, the Master Gardeners, catered...

Local Government

County approves stopgap budget

The Colusa County Board of Supervisors last week approved a recommended budget for 2020-21 although the numbers are expected to change dramatically when the...

Court restarts trials, struggles to adapt to COVID-19 restrictions

Colusa County Superior Court will remain on limited operations through the end of July, state officials announced Thursday, although COVID-19 restrictions could make it...

Williams passes on 2020 mosquito abatement

The residents of Williams will have to fight the nuisance of mosquitoes on their own this summer. The City Council decided at their June 17...

Public & Legal Notices

CITY OF COLUSA PLANNING COMMISSION – NOTICE OF PUBLIC HEARING (MIDSIZE SHOPPING CENTER/CONDITIONAL USE PERMIT)

CITY OF COLUSA PLANNING COMMISSION NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN THAT THE PLANNING COMMISSION will hold a Public Hearing in the City Council...

CITY OF WILLIAMS – PUBLIC HEARING NOTICE – WILLIAMS LANDSCAPING AND LIGHTING DISTRICT

CITY OF WILLIAMS PUBLIC HEARING NOTICE On July 15, 2020 at 6:00 p.m., in City Hall of the City of Williams, a Public Hearing will...

CITY OF WILLIAMS – NOTICE OF ELECTION

CITY OF WILLIAMS NOTICE OF ELECTION NOTICE IS HEREBY GIVEN THAT a General Municipal Election will be held in the City of Williams, California on Tuesday,...

COUNTY OF COLUSA – NOTICE OF ELECTION

COUNTY OF COLUSA NOTICE OF ELECTION NOTICE IS HEREBY GIVEN THAT an election will be held on Tuesday, November 3, 2020 for the purpose of electing...

COUNTY OF COLUSA – NOTICE OF ELECTION – SCHOOL DISTRICTS

COUNTY OF COLUSA NOTICE OF ELECTION NOTICE IS HEREBY GIVEN THAT an election will be held on Tuesday, November 3, 2020 for the purpose of electing...