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Three private collection agencies have received new contracts, the Internal Revenue Service said this week. The agencies can discuss overdue federal taxes with taxpayers and their ax representatives who have been notified by letter by the IRS their accounts been turned over to one of the companies for collection..
The three companies are CBE Group, Waterloo, Iowa; Coast Professional, Albion, N.Y., and Conserve, Fairport, N.Y.
Communications with taxpayers from the IRS will include a copy of Publication 4518, What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency (.pdf). After the IRS notification, the agency will send a letter to taxpayers and representatives informing them of the assignment of the account. Both letters will contain information to help taxpayers identify the amounts owed and that future agency calls are legitimate.
Private collectors must identify themselves as working on behalf of the IRS and follow the provisions of the Fair Debt Collection Practices Act. They are not authorized to take enforcements actions such as a filing of a Federal Tax Lienor issuing a levy.
While the firms can discuss payment options and set up agreements, payments must be made to the IRS.
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards. Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that. A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind