The Private Debt Collection Program
With concerns rising about our nation’s deficit and the ability to fully fund existing federal programs, it’s more important than ever that the federal government collect legitimately owed taxes to sustain the important programs our government provides on behalf of the American people.
While most taxpayers file and pay their taxes on time, some still have outstanding balances owed to the Treasury of the United States. The IRS estimates that the difference between the total amount of taxes owed and taxes paid, known as the tax gap, currently exceeds $400 billion.
Within the tax gap, active tax underpayment accounts total more than $131 billion in lost federal revenue.
In December 2015, Congress mandated the creation of the Internal Revenue Service (IRS) Private Debt Collection (PDC) Program within Section 32102 of the Fixing America’s Surface Transportation Act. The program provides the IRS with manpower resources and the expertise needed to assist with the collection of a subset of outstanding tax underpayments – specifically those where a tax return was filed but additional taxes are due. High-quality firms were selected to partner with the IRS for this effort: CBE Group, ConServe and Coast Professional, Inc.
With billions in federal taxes uncollected each year, the government’s partnership with private recovery companies returns vital funding to the U.S. Treasury and helps Americans achieve a zero balance with the IRS through collaborative solutions that allow voluntary compliance to fulfill individual tax obligations.