The Division contracts with a private collection company to collect overdue taxes (deficiencies) and outstanding returns (delinquencies). The current contractor is Pioneer Credit Recovery. If you’re contacted by this collection agency, please respond directly to your caseworker about your case. Collection agency employees follow the same confidentiality rules as employees of the Division.
The Collection & Enforcement branch of the Division of Taxation is responsible for the collection of delinquent and deficient taxes from businesses and individuals. Collection & Enforcement has the following process for tax debt sent to the State’s collection agency:
The Referral Cost Recovery Fee rate is 10.7%
A Referral Cost Recovery Fee is added to your tax liability when you are assigned to the agency. This fee will be in addition to any interest or penalties. You also will be charged a Referral Cost Recovery Fee for delinquent tax returns.
Once you file your delinquent returns, you may receive an updated billing notice from the Division if you still have a tax liability. The Referral Cost Recovery Fee will not be reflected on this billing notice. It is shown as a separate item on the Schedule of Liabilities sent to you from the agency.
Any revised billing notice sent to you from the Division does not give you more time to make your payment to the agency. If you do not make your payment on time, you will be charged additional fees.
The Director will issue a Certificate of Debt if any State tax is not paid within the time prescribed by law. The Director also may charge a fee for the cost of collection. These fees are in addition to any interest or penalty, or both, allowed by law.