IRS Private Debt Collection: Is the Agency Calling Real?
Last reviewed by Calculus Tax in-house Settlement Officer
By law, the IRS uses private collection agencies to collect certain outstanding, inactive tax debts. Only three agencies currently do this: CBE Group, Coast Professional, and ConServe. Before any agency contacts you, the IRS sends Notice CP40, and both letters include a taxpayer authentication number you can use to confirm the caller is legitimate.
Quick answer
Yes, the IRS uses private collection agencies for certain old, inactive tax debts, as required by law. Only three agencies do this: CBE Group, Coast Professional, and ConServe. You first get IRS Notice CP40, then a letter from the agency, both with a taxpayer authentication number to verify the caller. Legitimate agencies will not threaten you.
| Authorized agencies | CBE Group (800-910-5837), Coast Professional (888-928-0510), ConServe (844-853-4875) |
|---|---|
| First notice | IRS Notice CP40 |
| Second letter | The agency's initial contact letter |
| Verification | Taxpayer authentication number in both letters |
| Conduct | Agencies will not threaten you |
| In effect since | September 23, 2021, for the current agencies |
Why the IRS Uses Private Collectors
Federal law requires the IRS to use private collection agencies for certain outstanding, inactive tax debts. If your account is assigned, an agency works with you on the government's behalf to resolve it.
The Three Authorized Agencies
Since September 23, 2021, the IRS has assigned accounts to three agencies: CBE Group Inc., P.O. Box 2217, Waterloo, IA 50704, 800-910-5837; Coast Professional, Inc., P.O. Box 425, Geneseo, NY 14454, 888-928-0510; and ConServe, P.O. Box 307, Fairport, NY 14450, 844-853-4875. A caller claiming to collect for the IRS from any other company is a red flag.
The Two Letters You Get First
Before an agency contacts you, you receive two letters. First, the IRS sends Notice CP40 telling you your account was assigned to a private collection agency. Then the agency sends its initial contact letter with information on resolving the debt. Both letters contain a taxpayer authentication number.
How to Verify the Caller
Confirm the caller represents one of the three agencies, answer their identity questions, and exchange portions of the taxpayer authentication number to validate each other. You can also get a transcript to confirm your account was assigned to a private collection agency. See how to tell if an IRS call is a scam.
What a Legitimate Agency Will and Will Not Do
The IRS says the agency will be courteous and professional, respect your taxpayer rights, follow the law, and work with you to resolve the debt. It will not threaten you. If you feel an agency acted inappropriately, report it through the IRS's reporting channels.
Paying What You Owe
Payments on IRS debt go to the U.S. Treasury. Review the IRS's payment options for privately collected accounts on IRS.gov before you pay, and be suspicious of any request to pay by gift card or to a third party.
Your Options for Resolving the Debt
You can pay in full, set up a payment plan, or, if you cannot pay, explore IRS options such as currently not collectible status or an offer in compromise. Check how much time is left on the collection statute before committing to a plan.
Help With a Privately Collected IRS Debt
Calculus Tax confirms the assignment from your IRS transcripts, analyzes the account with Brevitax, and our in-house Settlement Officer reviews whether a payment plan or another option fits. Contact us before you agree to terms.
Frequently Asked Questions
Does the IRS really use debt collectors?
Yes. The law requires the IRS to use private collection agencies for certain outstanding, inactive tax debts.
Which collection agencies work for the IRS?
CBE Group Inc., Coast Professional, Inc., and ConServe.
What is Notice CP40?
The IRS notice telling you your overdue account was assigned to a private collection agency. It arrives before the agency contacts you.
How do I know the agency is legitimate?
Check that it is one of the three named agencies and exchange portions of the taxpayer authentication number from your letters.
Can a private collection agency threaten me?
No. The IRS says agencies will not threaten you and must respect your taxpayer rights. Report any inappropriate conduct.
Where do my payments go?
Payments on IRS debt go to the U.S. Treasury. Check the IRS's payment options on IRS.gov before paying.
Sources
What can change the answer
Notice type, issue date, filing history, account status, deadlines, and current agency procedures can change the available next step. Bring the complete notice and account records to a qualified review.
Tax rules and collection procedures can change and depend on the account. Federal claims should be checked against current IRS guidance; California claims should be checked against the California Franchise Tax Board. See our editorial methodology for sourcing and update standards.
Results depend on your facts and on IRS or state decisions. Calculus Tax, Inc. is not affiliated with the IRS or any government agency.
When professional help may make sense
Calculus Tax, Inc. can review notices, organize financial information, explain available paths, and communicate with the IRS or California agencies when representation is appropriate. The right next step depends on your facts, deadlines, filing history, and ability to pay.
We are based in Burbank and serve clients in Los Angeles and throughout Los Angeles County. See our local service-area pages for location-specific information.
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