CBE Group is one of the private collection agencies hired by the IRS to collect tax debts. They are legitimate, but unfortunately, scammers often pose as IRS collectors, so make sure to verify their identity using the information on your CP40 notice. If they refuse to identify themselves, demand payment in an unusual form (eg, iTunes gift cards), or threaten you, hang up and contact the IRS.
Note that CBE Group can help you set up payments, but they cannot garnish wages or seize assets. You don’t have to work with them – you can ask for your account to be transferred back to the IRS or hire a tax attorney to represent you.
For immediate assistance in resolving your IRS and unpaid tax issues, contact Wiggam Law. We are here to provide the guidance and support you need to achieve tax relief. Call 404-609-1300 or use our scheduler for a free consultation.
Key takeaways
- What CBE? A collection agency that collects IRS tax debt.
- How to check legitimacy? Verify the collector using the code from your CP40 notice.
- What can they do? They can call and collect payments. They can’t garnish wages or seize assets.
- What payments do they accept? All payments must be to the U.S Treasury, not to the collection agency, and not in an unusual format.
- What if you think it’s a scam? End the call, reach out to a tax attorney or the IRS for help.
- When to hire an attorney? If you want to dispute the tax, apply for settlements, stop involuntary collections, deal with high tax debts, or resolve complex issues.
Who Is CBE Group, Inc.?
CBE Group, Inc. is a private debt collection agency contracted by the IRS under the Private Debt Collection (PDC) program. CBE’s primary function is to assist the IRS in recovering unpaid tax balances that the IRS has chosen to transfer to private firms.
They operate under strict rules from the IRS to ensure taxpayer rights are respected and collections are managed responsibly.
While the IRS authorizes CBE Group to contact you and discuss repayment, they do not have enforcement powers. If you’re dealing with CBE, know that they must follow IRS guidelines and are prohibited from harassment or other aggressive collection tactics. If a collection agent threatens you with these types of actions, they are not in line with their IRS agreement and are likely violating the Fair Debt Collection Practices Act (FDCPA).
Did You Get a Call From 1-800-219-9042?
This is the number for the CBE Group. Here’s what you should do right now before calling back:
- Verify that your account was sent to collections – You should have received a CP40 notice. Otherwise, check your IRS online account, call the IRS, or have a tax attorney check for you.
- Learn how to verify the collection agency – The collector should be able to tell you the code that appears on your notice. If not, don’t talk with them. Don’t rely on the caller ID to verify them, as that can be manipulated.
- Know what to share – Don’t share anything until you verify the collection agent’s identity. Even if they seem to know things, don’t give them any additional information.
- Don’t pay with unusual methods – CBE should only collect payments made to the US Treasury. If they request gift cards, wires, or anything unusual, that’s a sign of a scam. Use official IRS channels for payment if possible.
- Hire legal representation – For complicated situations and to protect your rights, reach out to a tax attorney.
How the Process Works: What to Expect
The process begins when the IRS sends you a letter, known as a CP40 notice. This letter serves as official notification that your account has been assigned to a third-party collection agency, such as CBE Group. This letter will include the information you need to verify the legitimacy of the assignment and explain what’s coming next.
Once CBE receives your account, they will reach out, typically by letter or phone. Their communications should align with IRS Publication 4518, which outlines how CBE should interact with taxpayers. If you have concerns or questions, remember that the IRS and CBE are required to inform you of your rights at every step.
What Powers Does CBE Group Have?
CBE can tell you how much you owe, process payments, and set up monthly payments – for example, they can set up a Simple Payment Plan. They cannot enforce collections with tax liens, tax levies, wage garnishments, or asset seizure.
CBE also cannot help you set up settlements or hardship options, such as offers in compromise, partial payment installment agreements, or currently not collectible status.
What Rights Do You Have?
As a taxpayer and consumer, you’re protected under several laws, ensuring fair treatment and transparency in debt collection. Here’s an overview of your rights to help you navigate any interactions with CBE confidently.
Your Rights Under the Fair Debt Collection Practices Act (FDCPA)
The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers from abusive debt collection agencies and governs how they operate.
Under the FDCPA, CBE Group, like any private collection agency, must adhere to strict guidelines in how they communicate with you and handle your account. Here are some key protections you have under the FDCPA:
- Right to verification of debt: This step helps ensure that the debt is accurate and legitimately owed.
- Freedom from harassment or abuse: Repeated or overly aggressive communication, calls at inconvenient hours, or any form of harassment is prohibited by the FDCPA.
- Protection from false or misleading statements: CBE cannot misrepresent itself, your debt amount, or its authority. It must be transparent.
If you believe CBE has violated any of these rights, you have the option to file a complaint with the Consumer Financial Protection Bureau (CFPB) or the IRS. Seeking assistance from a tax attorney can provide additional support in these situations.
Taxpayer Bill of Rights: Additional Protections
The IRS provides its own set of taxpayer protections through the Taxpayer Bill of Rights. Key rights include:
- Right to be informed: You have the right to clear and accurate information regarding your debt, including why it’s owed, how much is owed, and any applicable options for repayment.
- Right to quality service: CBE must provide courteous service, answer your questions clearly, and treat you fairly.
- Right to privacy and confidentiality: CBE cannot share or misuse your information and must handle your case confidentially.
- Right to challenge or appeal: If you believe there’s an error in the debt amount or if you disagree with the debt itself, you have the right to challenge it, although the process varies based on the timeline and situation.
- Right to pay only what you owe: You are not obligated to pay any amount beyond what the IRS has assigned to CBE for collection. CBE should not tack on additional fees or costs to your debt.
A tax attorney can help you ensure that your rights are upheld, verify your debt, and provide support in managing the collection process in a fair and respectful way.
How to Deal with CBE Group, Inc.
If you’ve been contacted by CBE Group, here are some practical tips for managing the situation effectively.
1. Confirm Legitimacy Before Sharing Personal Information
Before providing any personal or financial information to CBE, make sure you’re truly dealing with a legitimate representative of CBE Group. Here’s how:
- Look for the CP40 notice from the IRS, which will inform you if your account has been transferred to CBE.
- Cross-check the contact information provided by CBE with what’s listed on the IRS’ website or call the IRS directly to confirm.
- Note the ID verification code on the CP40 notice.
- When you talk with CBE, have them give you their portion of the verification code.
If you have any doubts, ask CBE to send a written verification of your debt and their involvement.
2. Keep Records of All Communication
Document every interaction you have with CBE, whether by phone, email, or mail. Maintaining detailed records is a powerful tool if any disputes or discrepancies arise. Documenting your conversations can protect you and make it easier to clarify or adjust any agreements if needed.
3. Direct All Payments to the IRS or U.S. Treasury
Even though CBE manages your account, your payments must be made out to the US Treasury, not CBE. CBE can help you facilitate payments, using IRS payment methods, such as paying online via the IRS Direct Pay system, mailing a check to the appropriate IRS address, or arranging payments through IRS-approved electronic options.
4. Understand Payment Options Through CBE
CBE can help you set up a payment plan, such as an installment agreement, to break down your debt into manageable monthly payments. If you want other options, you’ll need to work directly with the IRS.
5. Stay Cautious with Personal Information
Generally, be cautious about sharing sensitive personal information, such as your bank account details and Social Security number, over the phone. If you’re in doubt, request verification or a secure way to share information. Never give out financial details unless you know CBE’s legitimacy and need for that information.
How to Have Your Case Sent Back to the IRS
In some situations, you may want to request that your case be returned to the IRS, especially if you’re experiencing financial hardship or have a legitimate dispute about the debt.
The collection agency must return your case to the IRS if you request it in writing. Use the contact details that you see on your placement letter from CBE, and send a letter saying that you want to work directly with the IRS.
Returning your case to the IRS can offer additional options, such as exploring financial hardship exemptions, payment reductions, or other relief programs. Consult with a tax attorney to determine the best path forward if you’re considering this step.
Scams Vs. Legitimate CBE Collections
Scams are abundant, so it’s important to protect yourself. Here’s a look at the differences between dealing with a legitimate IRS collection agency and a scammer. When in doubt, err on the side of caution and end the call if you think it’s a scam.
| Scenario | More Likely Legit | More Likely Scam |
| How it starts | Written IRS notice first (e.g., CP40), followed by a phone call | Text, email, or social media message out of nowhere |
| Pressure tactics | Professional, no threats | Threats of arrest, deportation, or immediate asset seizure |
| Payment method | Points you to IRS/U.S. Treasury options | Gift cards, crypto, wire, prepaid cards |
| Info requested | Basic verification steps | SSN or /bank details immediately |
Common Issues and How to Handle Them
If CBE Group, Inc. is handling your IRS debt, you may face some common issues. Here’s a quick guide on how to address them effectively:
1. Can’t Afford to Pay the Debt
If you’re unable to pay the debt in full, there are options such as monthly payments, settlements, or hardship. A tax attorney can help assess these options and represent your case to find the best solution for you.
2. Negotiating Payment Agreements or Going Directly to the IRS
If CBE’s payment terms don’t fit your financial situation, you can contact the IRS to explore more flexible options, like reduced payments through a partial payment installment agreement. For complex cases, a tax professional can guide you and negotiate directly with the IRS on your behalf.
3. Receiving Improper Notices or Facing Harassment
If you receive inaccurate notices or feel harassed by CBE, here’s what you can do:
- Request verification of debt: Ask CBE to confirm the debt details in writing if you spot inconsistencies.
- File a complaint: If CBE violates your rights through excessive contact or intimidation, you can report this to the Consumer Financial Protection Bureau (CFPB) or the IRS Taxpayer Advocate Service.
Guidance can make handling these issues easier. At Wiggam Law, we can help you navigate these challenges, communicate with CBE, and ensure your rights are protected every step of the way.
Understanding Your CP40 Notice
Receiving a CP40 notice can be unsettling, but it simply means your unpaid tax debt has been assigned to a private collection agency, such as CBE Group. The CP40 notice explains the next steps and provides information on verifying the agency’s legitimacy.
It’s crucial to read this notice carefully, as it’s the IRS’ official document informing you of the debt transfer. If you receive a CP40, take it as an opportunity to review your options and reach out to a tax professional who can guide you through the process.
Need Help Dealing with CBE?
Dealing with IRS debt is challenging, but understanding how to work with CBE Group can make the process more manageable.
If you find yourself struggling or have questions, reaching out to the IRS or a tax attorney can be invaluable. Here at Wiggam Law, we’re committed to helping taxpayers find solutions to their IRS issues with compassion and expertise.
Don’t hesitate to contact us for personalized assistance in navigating your tax debt journey. Call (404)609-1300 or use our scheduler for a free consultation.
FAQs About CBE Group
What is 1-800-219-9042?
This is the phone number for the CBE Group. They are a private collection agency that works for the IRS. But don’t rely on the caller ID for verification. Make sure you verify them using the code on your IRS notice.
Who does the CBE Group collect for?
CBE collects tax debts for the IRS, but the agency also collects consumer debts, such as medical or credit card debt. Verify your account before talking with them.
Is the CBE Group an IRS scam?
No, the CBE Group is not a scam, but sometimes, scammers pretend to be the IRS or a collection agency working for the IRS, so exercise caution.
Can CBE garnish wages?
No, CBE does not have the right to garnish your wages. Only the IRS can initiate a wage garnishment for unpaid federal taxes.
Can CBE seize assets?
No, only the IRS can seize assets. The Automated Collection System can garnish wages or initiate bank levies, but only revenue officers can start the process to seize physical assets.
