The Electronic Privacy Information Center (EPIC) has obtained a number of documents related to the required outsourcing of delinquent tax accounts by the Internal Revenue Service to third-party collection agencies. The documents include the contracts signed with Continental Service Group and Performant Recovery, Inc.
EPIC also obtained a copy of the policies and procedures manual that the IRS supplied to all third-party collection agencies it is working with, how those agencies must handle any complaints they receive from individuals, and the privacy and data security requirements that have been placed on the agencies, referred to as private collection agencies (PCAs).
For example, all PCAs must develop phone scripts and those scripts must be approved by the IRS prior to being used. One of the collection agencies contracted by the IRS recently ran into problems by going off-script with its collection efforts. Scripts must be created for the following situations:
- Initial Contact with taxpayer
- Initial Contact with Power Of Attorney
- Initial Contact with third party (not Power Of Attorney)
- Initial Contact with answering machine
- Initial Contact – child answers telephone
- Follow up contact with taxpayer/Power Of Attorney
PCAs must also mail an initial collection letter to all taxpayers within 11 days of receiving the account.
When making contact with delinquent taxpayers via telephone, the PCAs must always “convey a professional, businesslike manner when making a call,” according the policies and procedures. During a call, PCAs must also:
- Confirm receipt of IRS Publication 1, Your Rights as a Taxpayer
- Request immediate full/part payment to the IRS on the delinquent accounts.
- Request payment details (e.g. dates, amounts, and periods for which payments were designated) when the taxpayer indicates all or a portion of the tax was paid.
- Inform the taxpayer that the Fair Debt Collection Practices Act protects taxpayers from debt collection abuses.
