On September 22, 2021, the Internal Revenue Service (IRS) issued a press release announcing it awarded new contracts to three private-sector collection agencies to collect overdue tax debts. The previous contracts with third-party debt collectors expired Wednesday, September 22, 2021, and the newly announced contracts began the following day, September 23, 2021.
Background
In December 2015 Congress passed a law that allowed contractors to collect outstanding inactive tax receivables on the government’s behalf. On September 26, 2016, the IRS announced plans to begin private collection of certain overdue federal tax debts and selected four contractors to implement the new program. The four companies selected by the IRS in 2016 were CBE Group (Cedar Falls, Iowa), ConServe (Fairport, N.Y.), Performant (Livermore, Calif.), and Pioneer (Horseheads, N.Y.). As a condition of receiving a contract, the agencies selected must respect taxpayer rights including, among other things, abiding by the consumer protection provisions of the Fair Debt Collection Practices Act..
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