IRS Uses Private Collection Companies

By Eric P. Rothenberg, Esq. – The Internal Revenue Service [“IRS”] announced on April 5th , 2017 that they will begin to use private collection agencies to collect back taxes owed. Soon, the IRS will begin its process of sending letters to certain taxpayers that their past due federal tax accounts are being turned over to a private debt collection agency. This isn’t the first time they had this program. It’s a renewed program that uses private-sector collection agencies (PCA) which were first authorized under the Fixing America’s Surface Transportation [“FAST”] Act of 2015. “Here’s a simple rule to keep in mind. You won’t get a call from a private collection firm unless you have unpaid tax debts going back several years and you’ve already heard from the IRS multiple times,” said IRS Commissioner John Koskinen. “The people included in the private collection program typically already know they have a

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