February 2018

Tax Insight–February 2018                    Rita Bhayani



IRS Begins Using Private Debt Collectors

We’ve always told you that the IRS won’t call you to demand payment on a tax debt. Well, that just got a little more complicated. If you have an older IRS balance due, you may begin receiving phone calls from a select group of private debt collectors to try to recover the debt. Here’s what you need to know:

•    These are all older debts. You will have received paper correspondence from the IRS on the debt prior to any phone call.

•    The first communication will always be from the IRS by mail.

•    You should receive written notification from the debt collector prior to them calling you.

•    Only four groups are authorized to contact you on behalf of the IRS: CBE Group, from Cedar Falls, Iowa; Conserve, from Fairport, New York; Performant, from Livermore, California; and Pioneer, from Horseheads, New York. Any other debt collector seeking a tax payment is not legitimate.

•    Authorized debt collectors cannot accept payments. You will still pay the IRS any amount due. If the debt collector demands that you pay them directly, or in any form other than by check payable to the United States Treasury or electronic payment on the IRS website, it is unlawful.

•    The creditors will not threaten to call the police, or demand payment without an opportunity to appeal.

•    You can check your balance due by going to www.irs.gov/balancedue.

If you’ve received a phone call and are uncertain whether it is legitimate, give me a call. Together we can ensure that you are protected from tax scams. If you know that you have a balance due from a prior year, you do not have to wait to receive a phone call. You can call my office, and we can work together to create a plan to pay off your tax debt.


Important Tax Information

To protect against fraud, refunds with the Earned Income Tax Credit and Additional Child Tax Credit are delayed until February 15, 2018.


Did You Know?

On February 6, 1933, the Twentieth Amendment to the Constitution went into effect, reducing the amount of time between the election of the President and Congress and the start of their terms. As a result, Inauguration Day moved from March 4 to January 20.

Quote Corner



“Start where you are. Use what you can. Do what you can.”

~ Arthur Ashe