Private Collection Agencies to be Pursuing Federal Tax Debt


By DeEtte L. Loeffler, J.D., L.LM, Taxation

Starting next spring, the IRS will no longer be actively working on accounts that owe federal taxes. Four private collection agencies have been selected to take over these accounts. Under the Fair Debt Collection Practices Act, these contractors will be required respect the rights of taxpayers. These companies will not take any money personally. They are required to direct people to pay overdue taxes online at or send checks made payable to the U.S. Treasury directly to the IRS. Taxpayer advocates have expressed concerns that private bill collectors will not work cooperatively with taxpayers to settle debts.

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