What If Coast Professional Contacts You About Tax Debt

What to Expect If a Private Collection Agency Contacts You About IRS Tax Debt

When you have tax debt, there may come a point when the IRS assigns your debt to a private collection agency. In some cases, the law requires the IRS to contract with these agencies to get assistance collecting unpaid taxes.

One common private collection agency is Coast Professional, Inc. Dealing with a private collector is different than dealing directly with the IRS. This post helps you understand the process, ensure the agency is legitimate, and know your rights as a taxpayer.

When you’re unsure about your options, talk to our attorney at Seattle Legal Services. We’ll help you understand IRS notices and processes so you can be confident about choosing the right way forward.

Key Takeaways:

Coast Professional, Inc. – a legitimate private collection agency contracted by the IRS to collect certain unpaid tax debts.
To verify the collection agency – confirm you’ve received IRS Notice CP40 and Publication 4518, which include your unique taxpayer authentication number and the agency’s contact info.
Your rights – Coast Professional must follow the Fair Debt Collection Practices Act, meaning the agency cannot use deceptive tactics and must honor requests to stop communication.
Making payments – Even if you’re working with Coast Professional, all tax payments should still be made directly to the IRS using official channels like IRS Direct Pay or EFTPS.
How to get help – If you’re unsure about Coast’s legitimacy or need help with tax resolution options, consult a tax attorney to protect your rights and choose the best path forward.

Why Does the IRS Use Private Collection Agencies?

Starting in 2015, the IRS has been required to contract with private collection agencies for certain types of delinquent tax accounts. For example, if a taxpayer has been unreachable or their account has been inactive for a long time, the IRS may send that debt to a third-party agency for collections help.

The IRS takes a range of collection actions when you don’t pay your taxes. They’ll send you notices first, demanding payment and outlining any penalties and interest on your account. If you don’t respond or fail to set up an arrangement like a payment plan, they’ll keep escalating their actions, which may include outsourcing your tax debt to a third-party collector.

This takes some of the burden off the government when it is trying to collect unpaid balances.

Who Is Coast Professional, Inc.?

Coast Professional, Inc. is a business process outsourcing (BPO) provider that works with a range of organizations, including those outside the government. The IRS frequently contracts Coast Professional to help with collection services — it’s one of three major agencies the IRS works with, the other two being CBE Group, Inc. and ConServe.

Coast works with taxpayers to try to resolve their tax debt, relying only on IRS-approved systems and programs. For instance, representatives can help you understand tax repayment options like installment agreements or requesting relief from the IRS if you’re dealing with financial hardship.

You should hear from the agency via letter in the regular mail, and they may call you or ask to set up a phone call with you. They will use an authentication number in communications to verify it’s you, which also helps you verify it’s really the agency (discussed more below).

Coast’s employees are not government workers, but they’re trained to understand IRS procedures and ensure your rights are being followed and protected. Talk to a tax professional if you’re unsure about Coast Professional’s role in your tax resolution process.

Verifying Your Coast Professional Notice Is Legitimate

You need to know exactly how private collections work so you can verify your communications are legitimate. Unfortunately, some scammers try to impersonate these agencies or even the IRS to try to get your information or money. Here are the steps to expect when your debt is transferred to private collections:

Notice CP40 and Publication 4518

The first indicator that your debt is being assigned to an agency is Notice CP40 from the IRS, accompanied by Publication 4518, What You Can Expect When the IRS Assigns You to a Private Collection Agency. Notice CP40 tells you the name of the agency they’re working with, the agency’s contact information, and your 10-digit taxpayer authentication number. Always ensure you have received this notice from the IRS before moving forward with an agency contact.

Follow-up from Coast Professional

After receiving the IRS notice, you’ll be contacted by Coast Professional about collections. This should only happen after you’ve heard from the IRS via written notice.

Coast Professional Contact Information

Next, verify Coast Professional’s contact information on the communication you receive from them. The address and phone number are as follows:

Address: PO Box 425, Geneseo, NY 14454
Phone: 888-928-0510

If you are seeing different contact information, be cautious before responding with any of your information. Ask a tax expert when you’re unsure.

Comparing Letter Details

Compare the details on both your IRS notice and the letter from Coast Professional. Does everything align? This is another way to ensure the agency is legitimate.

Taxpayer Authentication Number

The most secure way to verify authenticity is to carefully follow the process provided by the IRS via your new 10-digit taxpayer authentication number. This number is at the top of your IRS Notice CP40, so keep it handy. When Coast Professional contacts you, there is a clear process for both of you to verify this number. The agency asks you for the first five digits in your number, and then the agency will provide the last five digits.

No Outstanding Tax Debt

If you know that you don’t owe anything to the IRS, any outreach from a third party about a delinquent tax bill is likely a scam. Before your account is sent to private collections, the IRS will try to contact you multiple times. If the company’s outreach is the first you’re hearing about the debt, do not respond or provide any sensitive information.

Tax Attorney Assistance

Tax-related scams are some of the most common today. Always be sure you’re talking to a legitimate organization when you hear from a private tax collection agency. If you’re unsure or worried, ask a tax professional, such as a CPA or tax attorney. They can review your documents and help you verify legitimacy.

Understanding the Fair Debt Collection Practices Act (FDCPA)

Another piece of tax law to know is the Fair Debt Collection Practices Act (FDCPA), which outlines certain taxpayer rights. Under the act, private collection agencies cannot use “deceptive or abusive conduct” when trying to collect debts. They are also required to provide accurate information to taxpayers and must respect taxpayer requests to stop communication.

If the collection agency violates the FDCPA, talk to an attorney about the next steps you can take for recourse. You also have the right to request validation of the debt the agency claims you owe, and you can work with a legal expert to dispute anything you don’t agree with.

Payment Options When Working with Coast Professional

If your tax debt has been outsourced to Coast Professional, keep in mind that any payments you make to resolve your debt are still sent to the IRS, not Coast. Your options for paying now, if you can, include:

IRS Direct Pay
Electronic Federal Tax Payment System (EFTPS)
Check or money order sent to the U.S. Treasury

Coast Professional will help outline your tax resolution options and go over any questions you have when you can’t pay what you owe. Common options are:

Installment agreements: You pay off your balance through monthly payments instead of in a lump sum.
Offer in compromise: When you can’t afford your full payment, you can request the IRS consider a lower offer and provide your financial details to support your claims.
Currently not collectible status: This is a temporary status the IRS assigns to accounts when a taxpayer is dealing with financial hardship.

These resolution options help you avoid escalating collection actions and will give you more time to resolve your debt. Note that the collection agency can only help you set up monthly payments. They cannot approve an offer in compromise or currently noncollectible status – you must work with the IRS on those options.

Is Coast Professional a Trustworthy Company?

Even though Coast Professional is a legitimate third-party agency that works with the IRS for collections, the company has received complaints in the past via the Better Business Bureau. Some complaints are related to scammers posing as Coast Professional, but others have to do with being contacted by the company.

The BBB still rates the company with an A+, so you can rest assured that it is trustworthy and legitimate. Do plenty of research and be diligent to ensure the company is respecting your rights.

If you have any problems with Coast Professional, file a complaint with the BBB and let the IRS know, too. Talk to a tax attorney about your issue to get professional help.

Get Help with Tax Debt from Seattle Legal Services

No matter your tax debt situation, you need to verify that any private collection agency that contacts you is legitimate. Make sure the IRS has contacted you about the third party, verify them using your new authentication number, and ask the IRS if you have questions about your notice.

When working with a third-party debt collector, you have rights as a taxpayer. If you are dealing with abusive practices or you aren’t sure what type of tax resolution to pursue, contact our attorney at Seattle Legal Services. We’ll help you communicate with the IRS or a private agency about your debt and explore all your options for getting your debt resolved.

Set up a consultation with our team to get started today.

FAQs About Coast Professional, Inc.

Is Coast Professional, Inc. Legitimate?

Yes, the IRS contracts Coast Professional to assist in collections for delinquent tax accounts. However, scammers may pose as third-party agencies, so make sure you have received a notice from the IRS about the transfer of your debts and that you have an authentication number for verification purposes.

Why Is Coast Professional Calling Me?

The IRS uses third-party collection agencies for some taxpayers with outstanding taxes. The company will contact you after the IRS notifies you that your tax debt is being transferred to the private agency. Coast Professional helps you pay off your debt and understand payment options.

Can Coast Professional Garnish Wages?

No, only the IRS will issue a levy to seize your assets or file a federal tax lien. The private company cannot decide to take these enforcement actions on its own.

Can I Deal Directly With the IRS?

Yes, if you prefer to deal directly with the IRS, you can request to have your account returned to the IRS. You may need to make this request in writing.

Do I Have to Pay Additional Fees for Coast Professional?

No, the IRS contracts with Coast Professional to help with collections. You don’t have to pay additional fees for those services. Your tax bill includes your original tax balance, penalties, and interest that have accrued.

How Do I File a Complaint Against Coast Professional?

If your rights have been violated when working with Coast Professional or another IRS-contracted agency, or you have an issue involving a scam, you can submit a complaint to the U.S. Treasury Inspector General for Tax Administration or to the Better Business Bureau. Talk to a tax attorney for help with your complaint.

Sources:

https://www.ftc.gov/legal-library/browse/statutes/fair-debt-collection-practices-act

https://www.consumerfinance.gov/ask-cfpb/what-laws-limit-what-debt-collectors-can-say-or-do-en-329/

https://www.bbb.org/us/ny/geneseo/profile/collections-agencies/coast-professional-inc-0041-235971431

https://www.irs.gov/businesses/small-businesses-self-employed/private-debt-collection-faqs

https://coastprofessional.com/irs/

https://www.irs.gov/businesses/small-businesses-self-employed/private-debt-collection