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IRS to Use Debt Collection Firms for Unpaid Taxes

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The Internal Revenue Service said Tuesday, it will begin sending out letters this month to tax payers with long overdue federal tax payments to private debt collectors.

With this new process, the IRS warns of potential scams.

Here's what every taxpayer needs to know: Only people with longstanding tax debts going back several years will be contacted, and the initial contact will not be by phone.

If your case ends up being farmed out to a private collection firm, the IRS will provide you its name and contact information.

The firm should also indicate they are working as authorized IRS contractors from one of these four firms: CBE Group of Cedar Falls, Iowa, Conserve of Fairport, New York, Performant of Livermore, California, and Pioneer of Horseheads, New York.

The IRS encourages taxpayers to file a complaint if they have been mistreated.