Starting in September, the IRS is contracting with outside debt collectors to go after delinquent taxpayers. The American Jobs Creation Act of 2004 authorized the IRS to contract with private firms to do this work. The three firms currently under contract to perform these services are The CBE Group Inc., Linebarger Goggan Blair & Sampson, LLP, and Pioneer Credit Recovery, Inc.
The Jobs Creation Act also included provisions to ensure that the debt collection agencies abide by the IRS’s strict privacy rules. While the private firms will be attempting to collect the overdue taxes, they are not authorized to take enforcement actions such as liens, levies or seizures. They are also not to be involved in offers in compromise, bankruptcies, hardship issues or litigation.The firms are simply assigned cases in which taxpayers have not disputed the tax liabilities.
By the end of 2006, approximately 40,000 taxpayers with overdue federal [tag]taxes[/tag] will be contacted by one of three debt collection agencies. By 2008, the IRS expects to have contracts with 10 debt collection firms.