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This information is from an IRS web page. Did your clients happen to tell you they received an IRS notice about the account being assigned to a private collection agency? Or are they like thousands of other Americans who never open mail from IRS because they know it could only be bad news?
The IRS will send you a letter before you are contacted by a private collection agency (PCA). This letter is called a Notice CP40 PDF (PDF). It verifies that your case was transferred to a PCA.
You can also request a copy of your account transcript through our Get Transcript tool to verify that we assigned your account to a PCA. The transcript will contain the following:
CODE EXPLANATION OFTRANSACTION DATE AMOUNT| 971 | Collection referred to a private debt collection agency | 08-07-2017 | $0.00 |
| 971 | Notice issued CP 0040 | 08-07-2017 | $0.00 |
And this is from a 2017 IRS press release:
The IRS reminds taxpayers to be on the lookout for scammers posing as private collection firms. The IRS will be watching for these schemes as the collection program begins, and this effort will include working with partners in the tax community and law enforcement about emerging scams.
People should remember that these private collection firms will only be calling about a tax debt the person has had – and has been aware of – for years and had been contacted about previously in the past by the IRS.
“Here’s a simple rule to keep in mind. You won’t get a call from a private collection firm unless you have unpaid tax debts going back several years and you’ve already heard from the IRS multiple times,” [former IRS Commissioner] Koskinen said. “The people included in the private collection program typically already know they have a tax issue. If you get a call from someone saying they’re from one of these groups and you’ve paid your taxes, that’s a sure sign of a scam.”
