Private Debt Collection Program Information Updated Online by IRS
The IRS has updated their website with additional information about its private debt collection agency (PCA) program. The webpage contains a list of private debt collection companies the IRS works with and information on how the private debt collection agency program works.
Background. The IRS is required to enter into qualified tax collection contracts with PCAs to collect certain outstanding inactive tax receivables ( https://www.irs.gov/businesses/small-businesses-self-employed/private-debt-collection-accounts-assigned-to-private-collection-agencies)
A tax receivable is any outstanding assessment that IRS includes in potentially collectible inventory.
If your tax debt has been transferred to a private collection agency, you will be contacted by one of these four private collection agencies on the government's behalf:
P.O. Box 2217
Waterloo, IA 50704
P.O. Box 307
Fairport, NY 14450
P.O. Box 9045
Pleasanton, CA 94566
PO Box 500
Horseheads, NY 14845
How it works
Before you are contacted by a private collection agency, you will receive two letters.
2. The private collection agency then sends their initial contact letter. It has information on how to resolve your overdue taxes.
Both letters contain a Taxpayer Authentication Number. It’s used to confirm your identity. It’s also for you to verify that the caller is legitimate. Keep this number in a safe place.
What to do
Work with your assigned private collection agency to resolve your overdue taxes.
- Questions and answers
- Get Transcript to verify the assignment of your account to a private collection agency
- Options to make Payments
- Watch for scams
- Reporting scams
- Report fraud, waste, & abuse
What to expect after you receive a Notice
- You should validate that the caller is representing one of the private collection agencies listed above.
- The private collection agency will ask you a series of questions to make sure they’re talking to the correct person.
- You will be asked to exchange portions of the Taxpayer Authentication Number with the private collection agency to validate each other’s identity.
- The private collection agency will be courteous, professional and respect your taxpayer rights, while following the laws.
- The private collection agency will work with you to resolve your overdue taxes. They will NOT threaten you. If you feel the private collection agency acted inappropriately, here’s how to report it.
For more information you can also view the IRS video Private Collection of Overdue Taxes.