The Internal Revenue Service (IRS) has chosen four private debt collection agencies to help them collect unpaid tax debts. The IRS is required to do so as a result of a provision in a highway funding bill that Congress passed last year. The controversial program is expected to start up next spring.
The four agencies chosen by the IRS to assist in collecting the debts include: CBE Group of Cedar Falls, Iowa, Conserve of Fairport, New York, Performant of Livermore, California and Pioneer of Horseheads, New York.
This will be the third time this program has been enacted. The first two times it was discontinued due to complaints of harassment from taxpayers and low success rates of collecting on debts. A recent increase in scammers posing as IRS employees has also raised some concern in bringing the program back.
In an attempt to cut down on scamming, the IRS said it will first issue a written notice that the unpaid debts are being turned over to a debt collector and then a second letter to confirm the transfer.
The debt collectors will be able to identify as contractors of the IRS and will be expected to follow the provisions of the Fair Debt Collection Practices Act.
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