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The IRS and Private Collection Agencies

The IRS began private collection of certain overdue federal tax debts in spring 2017 and hired three private collection agencies — ConServe, Coast Professional and CBE Group — to collect from taxpayers whose federal tax accounts are overdue. Review the following information about the IRS and private collection agencies to best prepare yourself as a taxpayer.

  • Before taxpayers are contacted by a private collection agency, they will receive two letters. The IRS will send one telling taxpayers that their accounts are being transferred to the private collection agencies. The collection agencies will then send a second letter to the taxpayer confirming the transfer.
  • These collection agencies will work on accounts where taxpayers owe money, but the IRS is no longer actively working them. The taxpayers would have had multiple contacts from the IRS in previous years, but still have an unpaid tax bill.
  • The agencies will be able to identify themselves as contractors of the IRS collecting taxes. They’re required to follow the consumer protection provisions of the Fair Debt Collection Practices Act, including being courteous and respectful of your rights.
  • Private collection agencies will not ask for payment on the phone and payments will not be made directly to the agencies. They will never ask for payment on a prepaid debt card, iTunes or gift card. Taxpayers can make electronic payments at irs.gov/payments or pay by check made out to the U.S. Treasury and sent directly to the IRS.
  • Taxpayers can choose not to work with the assigned private collection agency, but they must submit a written request to the collection agency. The agency will then return the account to the IRS.
  • The IRS cautions taxpayers to be on the lookout for scammers posing as a private collection agency. You will only be contacted by one of the three contracted collection agencies if you have an unpaid tax debt that is several years old.
  • To make a complaint about a private collection agency or report misconduct by its employees, call the Treasury Inspector General for Tax Administration hotline at 800-366-4484 or visit tigta.gov.
  • For all tax-related questions, to check your account balance or refund status, or to report tax identity theft, contact the IRS directly by visiting IRS.gov.