On behalf of Silver Tax Group posted in Tax Defense on Tuesday, November 21, 2017.
“As you were previously notified Pioneer Credit Recovery, Inc., (PCR) a private collection agency, is a contractor for the Internal Revenue Service (IRS) assigned to collect your past due tax obligations.”
When did the IRS start using third party collection agencies to collect back taxes? The legislation was passed as part of the Fixing America’s Surface Transportation Act (FAST Act) in December 2015. It has taken several years for the IRS to develop a program and decide on which contractors it use to collect overdue tax debt.
Contractors Hired By The IRS
Who is Pioneer and why are they sending me a message about tax debt? The IRS awarded contracts to four private collection agencies (interestingly, three of the companies are in the home states of two senators who pushed for private collections):
- CBE Group, an Iowa company
- ConServe Accounts Receivable Management located in New York
- Performant Financial Corporation based in California
- Pioneer Credit Recovery Inc. also headquartered in New York
You do not have to work with the collection agency. By submitting a written request to the private collection agency, you can resolve the tax issues with the IRS.
What are your rights if your account transfers to one of these private collection agencies? They are the same as when the IRS handled your case.
Private collection agents cannot call you before they send a written letter. They cannot suggest you take out a second mortgage or credit card debt to pay the balance. They must also refer a case back to the IRS, if you bring up a significant hardship that prevents you from paying the back taxes.
We Will Deal With Private Agencies For You
At Silver Tax Group, our attorneys can help you resolve your tax problems. The IRS does offer installment agreements, which our lawyers can help you negotiate. We work with you to understand the root cause that triggered the issues in the first place, then we look for a solution that will not only address the past problems, but avoid future ones from occurring.
When concerned about how private collection agencies are attempting to collect back taxes, get help. The IRS offers a number of tools that might offer relief and stop the harassment. Contact us today for a free case evaluation.