Private Debt Collection Was Implemented Despite Resource Challenges; However, Internal Support and Taxpayer Protections Are Limited.

The Commissioner, Small Business Self-Employed Division, should revise guidance to 1) prohibit the PCAs from requesting taxpayer SSNs as alternate means of authentication and 2) require the PCAs to discontinue telephone calls when taxpayers do not have their TAN and reissue the Initial Contact Letter to provide the TAN.

The Commissioner, Small Business/Self-Employed Division, should use IRS resources, e.g., referral unit, to work accounts that the PCAs return with an indicator that taxpayers can pay some but not all tax due so that taxpayers can be placed in partial pay installment agreements or offers in compromise.

The Commissioner, Small Business/Self-Employed Division, should use IRS resources to allow the PCAs to refer instances of willful noncompliance for further enforcement action.

The Commissioner, Small Business/Self-Employed Division, should establish a maximum period upon which an account can be assigned to the PCAs so that taxpayers are not effectively assigned on a permanent basis to the PCAs for their tax compliance-related issues.

The Commissioner, Small Business/Self-Employed Division, should use IRS resources to research accounts assigned to the PCAs with unfiled returns to determine whether a filing requirement appears to exist.