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Private Collection Agencies Collect $1 Billion, TIGTA Recommends Relief to Low-Income Taxpayers

by | Jan 5, 2023 | IRS |

The Treasury Inspector General for Tax Administration (TIGTA) released its Fiscal Year 2023 Biannual Independent Assessment of Private Collection Agency Performance last week. TIGTA’s report shows that private collection agencies (PCAs) have collected over $1 billion between April 2017 and September 2021. Additionally, the PCAs established more than 188,000 payment arrangements between taxpayers and the IRS, although over half of those arrangements have since been defaulted. While impressive, that is only a drop in the bucket of the more than $36.8 billion owed by the 4 million taxpayer accounts that were assigned to PCAs.

TIGTA also identified over 14,000 low-income taxpayers who should not have been subject to PCA collections per the Taxpayer First Act. TIGTA argues the IRS should recall these low income accounts that were assigned to PCAs prior to January1, 2021, but IRS management has disagreed.

To read the full report, click here.


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