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Ask Phil: What are Private Collection Agencies?

Today, Optima Tax Relief’s Lead Tax Attorney, Phil Hwang, discusses private collection agencies, otherwise known as PCAs.  

Unbeknownst to some taxpayers, the IRS doesn’t always collect taxes on their own. Sometimes they hire private collection agencies (PCAs). The IRS contracts these agencies to collect overdue tax debt from individuals and businesses.  

That said, if a collection agency contacts you and they are not the IRS, you should still take the warning seriously. Keep in mind that the IRS currently only utilizes the services of three PCAs:  

  • CBE Group Inc. 
  • Coast Professional, Inc. 
  • Conserve 

If another company is trying to collect on the IRS’s behalf, you should report them to the IRS immediately. The IRS will send you Notice CP40 to let you know that your overdue tax account has been assigned to a PCA. 

Taxpayers should keep in mind that once the IRS assigns their account to a PCA, they will no longer be able to claim hardship or submit an offer in compromise. However, getting your case back to the IRS is possible and should be considered if you want the best possible resolution.  

Join us next Friday as Phil will answer your questions about tax deductions, including how to maximize them!  

If Your Tax Account Has Been Assigned to a PCA, Contact Us Today for a Free Consultation 

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