What can the PDC (Private Debt Collection) do and not do? - Orange County

The PDC (Private Debt Collection) can contact the taxpayer and attempt to get either full-paid or get the taxpayer into a payment arrangement. The PDC can not take any enforcement action, meaning they have no right to levy the taxpayer. 

The PDC also has no authority to compromise a debt or abate tax penalties. For those taxpayers who claim to be in uncollectible status, the PDC would send their case back to the IRS to be worked. It is possible for taxpayers who prefer to work with the IRS to request in writing that their account be sent back to the IRS. 

The PDC is able to establish a payment plan (installment agreement) with the taxpayer. When this is done the taxpayer and his or her representative will receive a letter confirming the agreement is in place from the PDC

Christopher G. Carmona CPA,CFE

Orange County, USA