(833) 391-1038
24/7 Assistance
A tax debt collection agency may contact you if the IRS has transferred your unpaid tax debt to a private firm. While the IRS still oversees the process, these private collectors follow specific rules and limitations. Knowing how these agencies operate—and what your rights are—can help you avoid unnecessary stress and prevent financial missteps.
The IRS occasionally turns over old or inactive tax debts to third-party collection agencies. This usually happens when a taxpayer hasn’t responded to previous IRS notices or hasn’t made payments for an extended period.
Not everyone is assigned to a tax debt collection agency. The IRS selects accounts that are inactive, not under audit or appeal, and not currently being handled by a revenue officer.
Only a few companies are approved by the IRS to collect tax debt. As of 2025, some of these include:
Before discussing your finances, ask the caller for a unique Taxpayer Authentication Number or refer to your IRS CP40 notice—official confirmation that your case was assigned.
Private tax debt collectors must follow the Fair Debt Collection Practices Act (FDCPA) and additional IRS rules.
If you experience any of the above, you’re likely dealing with a scam.
Scammers often pretend to be IRS collectors to pressure people into paying fake debts. Protect yourself by staying informed.
Always check for an IRS CP40 notice before accepting a call. Ask the caller for their name, badge number, and agency name, and verify it on the IRS website.
Never give out your full Social Security number, banking details, or debit card information to anyone who calls unsolicited.
If you believe someone is impersonating a tax debt collection agency, report the incident to the Treasury Inspector General for Tax Administration (TIGTA) or the Federal Trade Commission (FTC).
If you truly owe the tax debt but cannot pay in full, there are legitimate IRS options available.
You may be eligible to set up a monthly payment plan with the IRS, which can be done online or with assistance from the collector. Learn more about your options for IRS installment agreements.
This lets you settle your tax debt for less than the full amount if you demonstrate financial hardship. However, this must be arranged directly with the IRS—not through a collection agency. You can explore the requirements for an Offer in Compromise to determine if you may qualify.
You can always request the IRS take your case back from the agency, especially if you prefer working directly with the IRS or believe there’s been a mistake.
Don’t panic if a tax debt collection agency contacts you—but don’t ignore it either. Take time to verify the legitimacy of the contact, understand your rights, and consider your repayment options. With the right information, you can navigate the process safely and protect your finances.
If you’re unsure how to respond to a tax debt collection agency, contact us to speak with a licensed tax professional. We’ll help you understand whether the contact is legitimate, explain your options, and work with you to resolve the situation with confidence.
Because your account was inactive and not currently under audit, appeal, or in IRS collections.
You should receive a CP40 notice from the IRS and can verify the collector on the IRS website.
No. Only the IRS, not private collectors—can issue wage garnishments or levies.
You have the right to fair treatment, privacy, and the ability to dispute the debt if needed.
Yes. If you prefer to work directly with the IRS, you can make that request in writing.
Advertising. This site is a marketing service and does not provide legal or tax advice. Submitting information does not create an attorney-client, tax professional-client, or any other advisory relationship. Results are not guaranteed. A list of participating attorneys, tax firms, and tax providers is available here.