What If I Ignore CBE’s Calls About My Tax Debt?

What Happens If I Ignore CBE Group’s Collection Calls?

If you’re getting calls or letters from CBE Group about unpaid taxes, you might feel tempted to ignore them. After all, they’re not directly from the IRS, so maybe the issue will go away on its own—right? 

Unfortunately, ignoring CBE Group’s contact attempts may not be your best course of action. CBE Group plays a specific role in IRS debt collection, and understanding their limitations and responsibilities can help you make a better decision for your financial future.

At The W Tax Group, we have helped many clients nationwide navigate these situations. This post will explain what happens when CBE Group tries to contact you, what they can (and cannot) do, and how addressing their calls can help you avoid bigger issues down the road.

What Is CBE Group and Their Role in IRS Debt Collection?

On September 22, 2021, the IRS announced that taxpayers with unpaid tax bills would be contacted by CBE Group. The CBE Group is a private collection agency that the IRS hires to handle certain unpaid tax debts. They’re one of a few private agencies the IRS has brought in to contact taxpayers with overdue accounts, especially when the IRS believes it’s more efficient to let an outside agency handle it. 

Unlike the IRS, CBE Group doesn’t have the authority to take enforcement actions, like garnishing wages or placing liens. Instead, their role is to get in touch with you, explain the debt you owe, and attempt to set up a payment arrangement.

When CBE Group contacts you, they’re doing so on behalf of the IRS. Ignoring these collection efforts doesn’t mean the debt will vanish. In fact, it could lead to more severe actions. 

Tax-related debt is unique because ignoring it comes with more serious potential consequences than other types of debt. If CBE Group can’t collect, they’ll send the debt back to the IRS—who will have a much wider range of collection tools at their disposal. Addressing the debt early with CBE Group can save you from these more aggressive actions by the IRS later.

What Happens If You Ignore CBE Group’s Collection Calls?

Ignoring CBE Group’s calls or letters won’t make the debt disappear. In fact, it can lead to several escalating actions:

1. Escalated Contact Attempts

If you don’t respond, CBE Group will increase their efforts to reach you. You may notice an uptick in phone calls and letters as they attempt to get your attention. These calls can be frequent and may start to feel intrusive. CBE Group is working on behalf of the IRS, and they’re required to follow specific protocols in their contact attempts. While these attempts won’t involve legal actions, they will continue until they get a response—or until they determine that further efforts aren’t likely to work.

2. Limited Resolution Options

Ignoring CBE Group means you miss out on certain opportunities to resolve your debt more flexibly. By talking with them, you may be able to negotiate a manageable payment plan or even get a temporary pause on collections. These options are generally easier to arrange with CBE Group than with the IRS. If you ignore them, you forfeit the chance to work out an arrangement that could relieve some immediate pressure.

3. Possible Return of Debt to IRS

If CBE Group is unsuccessful in collecting the debt, they will eventually return it to the IRS. When this happens, the IRS will likely take a much more aggressive stance, as they have access to stronger enforcement tools. This means you could face wage garnishments, bank account levies, or liens on your property.

However, if you prefer to work with the IRS, you can request to have your account returned to the IRS. CBE must comply with this request. For example, if you want to apply for a settlement on your taxes, you will need to work directly with the IRS.

Why It May Be Better to Deal with CBE Group Than the IRS Directly

It’s understandable to feel uneasy when a collection agency is contacting you, but dealing with CBE Group is often preferable to dealing with the IRS itself. Here’s why:

• CBE Group’s limited powers: CBE Group doesn’t have the authority to garnish your wages, place a tax lien on your property, or seize your bank accounts. This limitation can give you more breathing room. They are there to collect, but they can’t use legal force like the IRS can. If you talk with CBE Group and work out an arrangement, you may avoid having the debt go back to the IRS where stronger enforcement tools come into play.
• More flexibility in communication and payment plans: In many cases, CBE Group may offer more flexibility in setting up payment plans or even pausing collections for a short period if you’re experiencing financial hardship. While the IRS also has installment plans, it’s often simpler to work out these initial payment arrangements with CBE Group, who may be willing to negotiate in ways the IRS may not.
• Fewer administrative barriers: With CBE Group, the process of setting up payment arrangements is generally more streamlined than it would be with the IRS. The IRS can require more paperwork, verification, and can have long processing times, especially for more complex cases. CBE Group’s process tends to be more straightforward, allowing you to start resolving the debt faster and with fewer administrative hoops to jump through.
• A more manageable approach to debt resolution: Overall, dealing with CBE Group instead of the IRS gives you a simpler, more manageable way to address your tax debt without immediately facing the IRS’s full enforcement powers. Their limited authority and flexibility make it possible for you to work on resolving your debt with less pressure. Ignoring CBE Group’s attempts, however, could lead to the debt returning to the IRS, where the stakes are higher, and the consequences more severe.

If you’re getting calls from CBE Group, it’s worth addressing them. Taking steps to resolve your debt with CBE Group can protect you from more intense collection actions, save you from potential garnishments or liens, and allow you to set up a payment arrangement that suits your financial situation.

What CBE Group Cannot Do: Limited Resolution Options Compared to the IRS

While CBE Group offers some flexibility, there are certain debt relief programs they cannot negotiate on your behalf. Here are some key options that require direct interaction with the IRS:

• Offer in Compromise (OIC): The Offer in Compromise program allows you to settle your tax debt for less than the total amount owed. CBE Group cannot help you apply for an OIC. If you need this type of settlement, you’ll need to work directly with the IRS, and it may require the assistance of a tax professional to improve your chances of acceptance.
• Currently Not Collectible (CNC) status: CNC status is a temporary relief option for taxpayers who can’t afford to pay without facing hardship. It essentially puts IRS collections on hold until your financial situation improves. Only the IRS can grant CNC status, so CBE Group can’t offer this form of relief.
• Long-term relief options unavailable: If you’re looking for more comprehensive or hardship-based solutions, you’ll likely need to interact with the IRS directly. Working with CBE Group may help resolve the debt short-term, but it won’t give you access to these long-term IRS programs.

Ultimately, while CBE Group can be a helpful intermediary for basic payment arrangements, they are limited in the relief options they can provide. If you need assistance beyond a simple payment plan, you’ll likely need to work directly with the IRS.

Powers of CBE Group vs. Powers of the IRS

CBE Group is a private collection agency hired by the IRS to help recover certain tax debts, but their powers are much more limited than those of the IRS itself. Understanding the difference in their authority can help you make informed decisions about how to address your tax debt and avoid more severe consequences:

• CBE Group’s limitations: CBE Group can make phone calls, send letters, and negotiate payment plans, but they cannot take legal action to collect on the debt. This limitation is an advantage, as it gives you a window to address the debt without immediate legal consequences.
• IRS enforcement powers (if debt returns to IRS): If the debt is sent back to the IRS, the stakes get higher. The IRS has the authority to issue tax liens, garnish wages, levy bank accounts, and take legal action. Ignoring CBE Group’s efforts could mean triggering these stronger enforcement tools.

When you compare the collection powers of CBE Group to those of the IRS, it’s clear that CBE’s approach is less severe. While CBE Group’s contact attempts may feel inconvenient, ignoring them can lead to your debt being returned to the IRS, where the consequences are more serious.

If CBE Group Can’t Collect: What Happens When the Debt Returns to the IRS?

If CBE Group can’t collect your debt, they’ll return it to the IRS, and that’s when things can get serious. When your debt lands back with the IRS, you’re dealing with an entirely different level of collection power, and the IRS has a wide range of enforcement options that go beyond what CBE Group can do. 

Once the IRS takes over your case again, they have the authority to use aggressive collection actions to recover unpaid taxes. These actions aren’t immediate, but if you continue to ignore the debt, the IRS will start enforcing their collection powers. Here are some of the steps they may take:

• Wage garnishments: The IRS can garnish a portion of your wages without needing a court order. 
• Tax liens: The IRS can place a federal tax lien on your assets, including your home, car, or other property. A lien is a legal claim that gives the IRS a right to your property until the debt is paid. 
• Bank levies: The IRS can levy your bank account, which means they can take money directly from your bank account to cover the debt. 
• Asset seizures: In severe cases, the IRS has the authority to seize assets, including cars, real estate, and other property. 

What to Do If You Cannot Pay Your IRS Debt

Owing the IRS is stressful, but ignoring it will only lead to bigger problems. Fortunately, you have options to help manage your debt, whether through CBE Group or directly with the IRS.

Options with CBE Group

If CBE Group is contacting you, they can help set up basic payment options:

1. Installment plans: CBE Group can arrange a payment plan, letting you pay off the debt over time in smaller amounts.
2. Temporary collection pause: If you’re in a financial bind, they may agree to pause collections briefly to give you breathing room.

While CBE Group’s options are limited, they can provide some relief. If you need other solutions, you’ll need to work directly with the IRS.

Options If Debt Returns to the IRS

If CBE Group can’t collect and the debt returns to the IRS, you have more comprehensive options:

1. IRS payment plans: The IRS offers short- and long-term payment plans, letting you spread payments out monthly.
2. Offer in Compromise (OIC): Qualifying taxpayers can settle for less than they owe if paying in full would cause hardship.
3. Currently Not Collectible (CNC) status: If you’re facing severe financial hardship, CNC status pauses IRS collections temporarily.

It’s crucial to address IRS debt quickly to avoid added penalties and aggressive actions. Consulting a tax relief professional can help you find the right solution for your situation, whether that’s a payment plan or a hardship-based program.

When to Seek Professional Help with IRS Debt

If you’re struggling to manage IRS debt and unsure about your options, this is a good time to consult with a tax relief professional. A tax attorney can guide you through the process of applying for an Offer in Compromise or CNC status, increasing your chances of success. They can also help you understand your rights and negotiate on your behalf to minimize risks if your debt returns to the IRS. 

Why Addressing IRS Debt Early Can Prevent Consequences

Ignoring calls from CBE Group won’t make your IRS debt disappear, and may even lead to more serious collection efforts. Addressing the debt early—while it’s with CBE Group—gives you more control, potentially allowing for manageable payment plans without the risk of aggressive IRS actions. 

If you’re facing overwhelming debt and feel stuck, professional assistance can open doors to relief programs you may not have known about. Don’t wait until the IRS is at your doorstep. Take action now to secure a more stable financial future. Our tax relief attorneys at The W Tax Group are here to assist you. Contact us to set up a free consultation. Call at (877) 500-4930 or send us a message online.