Tax News
Private Debt Collection

To assist our Collection Program, we contract with private collection agencies (PCA) to collect delinquent California tax debts that are not economical for our collectors to pursue. These agencies collect tax debts from individuals inside California.

Various provisions ensure this collection program is fair. To collect on our tax accounts, private collection agencies must first bid against other firms to get contracts with us. Then we award our contracts to the most technically qualified contractors who will provide the highest net return to our state. These contracts last one year, and can be extended twice (one year each time). After that, various private collection agencies compete for the contracts again.

We require all PCAs to adhere to the Fair Debt Collection Practices Act, our Taxpayers’ Bill of Rights, California Revenue and Taxation Code, and all other applicable our policies.

PCAs and their employees are required to sign our confidentiality and disclosure agreements acknowledging the confidentiality of tax information and the penalties for unauthorized disclosure.

We conduct physical onsite Safeguard Reviews of each PCA to ensure compliance with security and confidentiality provisions regarding our data.

We may withhold or reduce account placements, deny an increase in commission, and/or terminate the contract for any breach of the agreement’s security and confidentiality provisions.

We may require all PCAs and their employees to complete a background check and be fingerprinted.

We ensure PCAs meet our high standards for customer service by requiring our Taxpayer Advocate phone number be included on all outgoing notices, conducting site visits of the PCAs premises during the term of the contract, and analyzing every taxpayer complaint.

We conduct a quarterly performance evaluation of all PCAs to ensure our customer service requirements are met. Results of the evaluations are available on our public website.

Back to November 2011 Tax News