Know Your Rights
Private Debt Collection
You received a call or letter from a company you have never heard of — claiming to collect your IRS tax debt. This is either a scam, or the IRS has legitimately transferred your account to one of its four authorized private collection agencies.
IRS tax debt transferred to a private collector is still IRS debt. Every payment option — payment plans, hardship holds, Offers in Compromise — still applies. You do not lose any rights by being transferred.
Situation 1 — Legitimate transfer: You receive a letter from CBE Group (one of the four authorized agencies) saying the IRS transferred your account. You ignored IRS notices for years, the IRS moved on to other cases, but now they have handed your file to a collector to make one more attempt before the collection statute expires.
Situation 2 — Scam posing as IRS:You receive an aggressive phone call demanding immediate payment via wire transfer or gift cards for "IRS back taxes" or you will be arrested. This is a scam. The IRS never demands gift card payments, never threatens immediate arrest, and real collection agencies are prohibited from these tactics.
Situation 3 — Old forgotten debt: You had a tax issue from 2009 that you thought was resolved or forgotten. The IRS transferred it to a collection agency for one final attempt before the 10-year statute expires. You may be much closer to the debt expiring than you realize.
As of the IRS Private Debt Collection program, only four companies are authorized to collect IRS tax debt. If you are contacted by any other company claiming to collect IRS taxes, it is a scam:
CBE Group
Waterloo, Iowa
ConServe
Fairport, New York
Performant Recovery
Livermore, California
Pioneer Credit Recovery
Arcade, New York
How to Verify
Before engaging, call the IRS directly at 1-800-829-1040 to confirm your account was transferred and which agency received it. Do not provide any payment information until verified.
The IRS transfers accounts to private collectors when:
Important: The IRS will always send you a written notice (CP40) before your account is transferred. The private collection agency will then send its own initial letter (Letter 2970). If you never received these letters, there may be an address issue — or you may be dealing with a scam.
Private IRS debt collectors are bound by both the Fair Debt Collection Practices Act (FDCPA) and IRS rules. They have fewer powers than IRS agents and cannot do many things the IRS can:
If your account was transferred to a private collector, it may be because the IRS is running out of time to collect. Accounts near their Collection Statute Expiration Date (CSED) are commonly transferred.
Before you set up a payment plan with a private collector, check your assessment dates. If the debt expires in 12–24 months, a payment plan extends the statute. Waiting out the clock — with a hardship hold or CNC status — may eliminate the debt entirely.
You have the right to request a hardship hold or CNC status even after your account is transferred to a private collector. The collector must refer this request back to the IRS. Do not let them pressure you into a payment plan without evaluating your full situation.
Verify it is legitimate: Call the IRS at 1-800-829-1040 to confirm. Ask for the agency name and the account balance.
Request debt validation: You have 30 days from first contact to request written validation of the debt. Send by certified mail. Collection must pause while they respond.
Check your CSED: Request your IRS transcript to determine the assessment dates and how much time is left on the collection statute.
Evaluate all options before paying: CNC status, Offer in Compromise, and the expiring statute may all be better outcomes than a multi-year payment plan with a collector.
Our tax professionals can contact the IRS today and request a hold on collections while we review your situation.
No obligation. We will review your case and contact you.
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