Contacted by a Private IRS Debt Collector? How To Protect Yourself While Resolving Tax Debt In Florida

Demands for payment of past tax debts are common but unnerving. It may feel like a scam, particularly when there is demand for payment, but is it? The IRS has, in certain cases, contracted with private debt collection agencies. However, tax scammers often take advantage of this policy to trick unsuspecting taxpayers into handing over money or personal information.

At the office of Ronald Cutler, P.A., our Florida tax-IRS attorney has over 50 years of experience, serving as a CPA and former FBI Special Agent investigating tax fraud. We help Florida taxpayers navigate IRS collections safely and confidently, with the legal protection they deserve.

How IRS Private Debt Collection Works and Why It’s Confusing

Bothered by calls, texts, or other correspondence from people claiming they represent the Internal Revenue Service (IRS)? Most are scams, but there are limited situations in which the IRS refers older, inactive tax debts to an authorized private debt collection agency (PDCs).

These third-party agencies are contracted by the IRS, which means they must follow certain rules and don’t have the same authority as the IRS itself. Here’s what to know about legitimate IRS debt collectors:

• They will only contact you after you’ve received two official IRS letters: IRS CP40 Notice telling you your account is being transferred, and a letter from the debt collection agency confirming the transfer.
• They will never demand payment by prepaid card, wire transfer, or gift card.
• They are not allowed to take enforcement actions. Only the IRS can file liens or levy your assets.
• Payments should be made directly to the U.S. Treasury, not to the agency.

How to Tell If Tax Collection Notices Are a Scam and What to Do If You’re Unsure

The IRS reports that tax collection scams are on the rise and represent one of the most common types of consumer fraud. Even if someone provides your full name, address, or tax ID, that doesn’t mean they’re legitimate. Scammers are skilled at creating fake documents and spoofed caller IDs that look official.

If you’re contacted by someone claiming to collect on IRS debt, here are smart steps to take:

• Check for IRS letters: You should have received an official notice before any private agency contacts you.
• Request identifying details: Legitimate collectors must provide their name, company, and Taxpayer Authentication Number.
• Do not give payment info or personal data until you’ve verified their legitimacy.
• Call the IRS directly if you’re unsure about the status of your account.
• Consult a tax-IRS attorney before agreeing to any payment plan or settlement.

Worried About Tax Debts? Contact Our Florida Tax-IRS Attorney

It is natural to be worried about tax debts, but don’t risk falling for a scam or making a mistake that could cost you. At Ronald Cutler, P.A., we offer skilled, reassuring support backed by decades of IRS experience. Our Florida tax-IRS attorney helps you confirm what’s real, respond strategically, and pursue resolution on the best possible terms. Contact our office today to schedule a consultation.

Sources:

irs.gov/businesses/small-businesses-self-employed/private-debt-collection

irs.gov/newsroom/common-tax-scams-and-tips-to-help-taxpayers-avoid-them\