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Private Collection of Tax Debts—Here's What You Should Know

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From the IRS : The IRS will begin contacting some taxpayers whose overdue federal tax accounts are being transferred to private collection agencies. But watch out for scammers who might claim to be associated with the program to try to steal your money. Keep in mind, the IRS will always send you a letter first before assigning your account to a private collection agency (PCA). Learn more about this new private debt collection program, including how to avoid tax scams and protect your taxpayer rights. Starting this month, the Internal Revenue Service will begin sending letters to a relatively small group of taxpayers whose overdue federal tax accounts are being assigned to one of four private-sector collection agencies. The new program, authorized under a federal law enacted by Congress in December 2015, enables these designated contractors to collect, on the government’s behalf, unpaid tax debts. Usually, these are unpaid individual tax obligations that are not currently being wor