The IRS has contracted three private-sector collection agencies to collect overdue tax debts.
IRS will exclude accounts from collection with private collection agencies involving taxpayers who are:
- Deceased
- Under the age of 18
- In designated combat zones
- Victims of tax-related identity theft
- Recipients of supplemental security income (SSI) or social security disability insurance (SSDI)
- Adjusted gross income does not exceed 200% of the applicable poverty level
- Currently under examination, litigation, criminal investigation or levy
- Subject to pending or active offers in compromise
- Subject to an installment agreement
- Subject to a right of appeal
- Classified as innocent spouse cases
- In presidentially declared disaster areas and requesting relief from collection
Private collection agencies will return accounts to the IRS if taxpayers and their accounts fall into any of these 10 situations after assignment to the private collection agencies.