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Governor Mikie Sherrill • Lt. Governor Dr. Dale G. Caldwell

Division of Taxation

The Collection Process

New Jersey contracts with a private collection company to collect overdue taxes (deficiencies) and outstanding returns (delinquencies). As of May 18, 2026, Pioneer Credit Recovery is no longer collecting on taxes owed to the State of New Jersey. These accounts will be transferred to a new collection agency approximately June 15, 2026.

Deficiency - When you file a tax return and have an amount due, but do not pay the tax in full.
Delinquency - When you should have filed a tax return, but did not.
If you fail to file a required tax return, your account is considered delinquent and we will assess a tax liability.

When we notify you of a New Jersey tax deficiency or delinquency and you do not respond to the notification, (pay the balance or file the return), we then send your account to the collection agency.

  • The agency will review the debt and assign your account to a caseworker.
  • The caseworker will mail you an initial contact letter along with an updated Schedule of Liabilities detailing the current balance due.
  • If you do not respond to the initial contact letter, your caseworker will attempt to contact you (or your authorized representative) by phone to resolve the matter. The vendor will never ask you to wire money or load a rechargeable money card as a way to pay a New Jersey tax debt. (See Tax Collections Scams for more information).
  • If the debt is still outstanding, a Certificate of Debt (COD) is entered with the Clerk of the New Jersey Superior Court. A COD has the same force and effect as a Docketed Judgment adjudicated in any court of law. If a COD is issued for the outstanding liability, a Cost of Collection Fee is added to the docketed judgment and becomes part of the outstanding liability.

Once the COD is in place, the case is returned to the Division for further collection. All cases with COD's are assessed a Cost of Collection in addition to the Recovery Fee.

Referral Cost Recovery

When you are assigned to the vendor, a Referral Cost Recovery Fee is added to your tax liability. This fee is in addition to any interest or penalties.

Delinquent Returns

You will also be charged a Referral Cost Recovery Fee for delinquent tax returns. Once you file your delinquent returns, we will send an updated billing notice if you still have a tax liability. The Referral Cost Recovery Fee will not be reflected on this billing notice. It will be shown as a separate item on a Schedule of Liabilities issued by the vendor.

A revised billing notice does not give you more time to make your payment to the vendor. If you do not make your payment on time you will be charged additional fees.

Cost of Collection Fee

The Director will issue a Certificate of Debt if any New Jersey 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, otherwise allowed by law.

Once a debt or delinquency has been assigned to a caseworker with the vendor, agents with the Division can no longer assist you with any questions about these tax matters. You must contact the vendor directly.

To protect your identity, collection agency employees follow the same confidentiality rules as employees in our Customer Service Center. Be sure to have your notice or a copy of your return ready before you call.

As of May 18, 2026, Pioneer Credit Recovery is no longer collecting on taxes owed to the State of New Jersey. These accounts will be transferred to a new collection agency approximately June 15, 2026. In the meantime, you may continue to make payments online at NJ Division of Taxation - Pay Tax.

If you have questions about your account, contact the Division of Taxation at 609-322-6000 or by email at taxation.clu@treas.nj.gov.


Last Updated: Monday, 05/18/26