Estimated reading time: 1 minute, 35 seconds

Private Agencies Collect 1.79% on Overdue Tax Accounts

 Private collection agencies have collected $498.4 million in commissionable payments from the $30.1 billion in accounts assigned to them. That rate of 1.79 percent collected may stem from the fact the average age of the accounts.

 Those were among the statistics provided in Fiscal Year 2021 Biannual Independent Assessment of Private Collection Agency Performance, issued on December 28.

The Treasury Inspector General for Tax Administration recommended the Internal Revenue Service try to identify cases it will not work earlier.  The report states the average age of PCA accounts increased to 5.31 years from the 4.75 years reported in the earlier review. However, the IRS disagreed with the recommendation for reasons that the report did not state. However, the report also said 55 percent of agreements between taxpayers involved and the agencies were canceled when taxpayers defaulted.

Nevertheless, the collections have enabled the IRS to add collection staff as the IRS can legally keep up to 25 percent of the amount collected by the PCAs. These staffers were added under the Special Compliance Personnel Program Accounts and as of September 10, there were of these staffers employed at two IRS campuses. As of May 14, SCP employees had collected almost $218 million.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Read 327 times
Rate this item
(0 votes)

Visit other PMG Sites:

click me
PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.