Fiscal Year 2021 Biannual Independent Assessment of Private Collection Agency Performance.

The Director, Collection, should create additional return reason codes to identify those taxpayers who express a willingness to work with the IRS.

The Director, Collection, should comply with I.R.C. Section 6306, which only allows PCAs commissions for qualified collection contracts.

The Director, Collection, should work with the PCAs to allow for them to obtain financial information from taxpayers who want to make partial payments and provide that information to the IRS for potential further interaction with the taxpayers.

The Director, Collection, should consider using both last return filed information and third-party income information in its methodology to exclude low-income taxpayers from PCA inventory.

The Director, Collection, should review each PCA's procedures for acquiring bank information from taxpayers to determine whether modifications are warranted and align them with the guidance in the PPG to reduce the risk of potential fraud.