Receiving an unexpected phone call from a debt collector is stressful, but a call from The CBE Group about an IRS debt can be particularly alarming. If you have received a call or an official IRS CP40 letter mentioning them, take a deep breath. This guide explains exactly who CBE Group, Inc. is, their role in the IRS private debt collection program, and the precise steps you should take to protect your rights and resolve your tax situation.
Who Is CBE Group and Why Are They Contacting Me?
CBE Group, Inc. is a large, legitimate third-party private collection agency (PCA) headquartered in Cedar Falls, Iowa, that has a contract with the IRS. Under the federal Private Debt Collection (PDC) program, the IRS assigns certain overdue tax accounts to PCAs like CBE Group to handle communication and help facilitate a payment plan.
However, it is critical to understand that the IRS still owns your debt. CBE Group acts only as a communication bridge and does not have the legal enforcement powers (like levying accounts or garnishing wages) that the IRS does. While they are a real company, not a scam, they are also the subject of numerous consumer complaints filed with the CFPB and BBB. This makes it vital to verify everything and know your rights before acting.
Protections Under the FDCPA
When dealing with The CBE Group or any collection agency, you are protected by the Fair Debt Collection Practices Act (FDCPA). This federal law is designed to prevent abusive, unfair, or deceptive practices. Key rights include:
- The Right to Validate the Debt: You can send a written request for proof that you owe the money. The agency must stop collection efforts until they provide this verification.
- The Right to Control Communication: You can specify in writing how and when the agency can contact you. You can even demand they stop contacting you altogether (though this won’t erase the debt).
- Protection from Harassment: Collectors cannot use threats of violence, profane language, or call you repeatedly to annoy or harass you.
- Time and Place Restrictions: They cannot call you before 8 a.m. or after 9 p.m. local time unless you agree to it.
These protections are guaranteed by federal law. For a detailed review of your rights, you can visit the CFPB’s Debt Collection resource page.
How the IRS Private Debt Collection Program Works
What is CBE Group’s role in this? The process always begins with the IRS. You can learn more about the program directly from the IRS’s official Private Debt Collection page.
- Account Assignment: The IRS identifies older or hard-to-collect tax accounts that meet specific criteria for the PDC program.
- Official IRS Notification (CP40 Notice): The IRS will mail you an official CP40 notice. This letter informs you that your account has been assigned to a specific private collection agency and provides their contact information. It will also include a unique code for verification.
- Contact from the Collector: After you receive the CP40 notice, CBE Group (or another assigned agency) will contact you by mail and phone to discuss your account.
- Payment Processing: All payments must be made directly to the IRS. Never send a payment to CBE Group or any other private company. They can help you set up a payment plan, but the money always goes to the U.S. Treasury.
What CBE Group Can and Cannot Legally Do
Knowing the legal boundaries is key to protecting yourself. Under the Fair Debt Collection Practices Act (FDCPA), here is what you can expect from a CBE Group phone call:
What CBE Group CAN Do:
- Call you and send letters to discuss your tax debt.
- Provide information about your account and confirm the amount you owe.
- Explain your repayment options, such as helping you set up a CBE Group installment agreement (which is ultimately subject to IRS approval).
- Request financial information to help determine the best payment solution.
What CBE Group CANNOT Do:
- Garnish wages, levy bank accounts, or seize property. Only the IRS has these enforcement powers.
- File or release a federal tax lien.
- Threaten, harass, or use abusive language.
- Misrepresent their authority as if they were IRS agents.
- Demand payment through non-IRS channels like gift cards, wire transfers, or cryptocurrency. This is a major red flag for a CBE Group scam.
Immediate Steps to Take if CBE Group Contacts You
- Before sharing any personal information, locate your IRS CP40 notice. All the information you need for verification is on that letter.
- Ask the agent for their name and ID number, and ask them to provide the unique verification code from your CP40 notice. If they cannot, hang up.
- Keep a log of every call: the date, time, agent’s name, and a summary of the conversation.
- Do not provide bank account numbers or your full Social Security number unless you have initiated the call and are 100% certain of its legitimacy.
- Always make payments through official IRS channels like IRS Direct Pay or EFTPS.
- If the amount they claim you owe seems incorrect, it is vital to find out exactly how much you owe the IRS by requesting your official tax transcripts.
Your Options If You Cannot Pay in Full
If paying the full amount is not feasible, you have several options. While CBE Group can discuss these with you, a tax professional can represent you to secure the best terms.
- Installment Agreement: Make affordable monthly payments.
- Offer in Compromise (OIC): Settle your tax debt for less than the full amount if you meet strict eligibility criteria. Our Offer in Compromise guide can show you how.
- Currently Not Collectible (CNC): If paying would cause financial hardship, the IRS can temporarily pause collections.
- Request to Return Case to IRS: You always have the right to request that your account be returned to the IRS for direct handling.
How to Protect Yourself from Tax Collection Scams
Scammers often pretend to be from the IRS or collection agencies. Here are the warning signs:
- They demand immediate payment via gift cards, wire transfer, or Venmo.
- They threaten you with immediate arrest, deportation, or seizure of your assets.
- They call you without the IRS first sending you a CP40 notice in the mail.
- They refuse to provide verification details or pressure you not to hang up.
If a call feels wrong, it probably is. Hang up and call the IRS directly or contact a trusted tax relief firm.
How Precision Tax Relief Can Help You with The CBE Group
Dealing with any debt collector can be overwhelming. When you hire Precision Tax Relief, we take over all communications so you don’t have to. We will:
- Verify Everything: We immediately pull your IRS transcripts to confirm the debt is accurate and you aren’t being overcharged.
- Stop Aggressive Collection: We can stop an IRS levy and other aggressive actions if your case is at risk.
- Negotiate on Your Behalf: We represent you to negotiate the best possible outcome, whether it’s an installment agreement, OIC, or CNC status.
- Handle the Paperwork: We can assist with bookkeeping cleanup to ensure your financial documentation gives you the best chance of qualifying for relief programs.
If The CBE Group has contacted you, verify and act. Precision Tax Relief will: verify your balance, stop aggressive collection activity, and negotiate the best path forward (installment agreement, OIC, CNC).
Call now for a free case review or request a free transcript review online.
Frequently Asked Questions
What is an IRS CP40 notice?
A CP40 notice is an official letter from the IRS informing you that your overdue tax account has been assigned to a private collection agency, like CBE Group, for communication and payment setup.
Should I pay CBE Group directly?
No, never. All payments must be made directly to the “U.S. Treasury” using official channels like IRS Direct Pay. CBE Group is only authorized to facilitate the payment arrangement, not to collect money themselves.
Can CBE Group garnish my wages or seize my property?
No. CBE Group is a third-party communicator and has no legal enforcement power. Only the IRS can authorize actions like wage garnishment, bank levies, or asset seizures.
Do I have to speak with the CBE Group?
No, you don’t. You have the right to request in writing that they cease contact or only communicate through your legal representative. A tax professional can handle all communication on your behalf.
How do I stop CBE Group from calling me?
The most effective way is to send a written cease and desist letter via certified mail. However, this doesn’t make the debt disappear. The best long-term solution is to resolve the underlying tax issue with a professional’s help.
Can I request my case be returned to the IRS?
Yes. You have the right to request in writing that the collector return your account to the IRS for handling. If this is the best strategic move for your case, we can prepare and submit this request for you.