What Is CBE Debt Collection Group & What Happens When They Contact You?

If you’ve received letters or calls from CBE Group about an IRS tax balance, you’re likely confused, concerned or unsure how to respond. CBE Group is one of the private collection agencies contracted by the IRS under its Private Debt Collection (PDC) programme, and their role comes with limitations and rules.

In this article, we’ll explain who CBE Group is, how the IRS assigns accounts to them, what rights you have, what they can and cannot do, and how to respond effectively to protect your interests.

If you’re dealing with CBE or have IRS debt assigned to a collection agency, the attorneys at Tax Law Advocates can evaluate your case and help you craft the right response. Learn more about our IRS services.

Why the IRS Uses Private Collection Agencies

Under U.S. law, the IRS uses several private agencies to handle certain tax debts, typically those the IRS has had difficulty collecting directly. CBE Group, Inc. is one of the three authorized agencies. 

The process is as follows:

  1. The IRS first sends a notice (such as CP40) to inform you that your account may be assigned to a private agency. 
  2. If assigned, CBE Group (or one of the other agencies) will contact you about paying or resolving your tax debt. 
  3. CBE’s collection efforts must comply with IRS rules and the Fair Debt Collection Practices Act (FDCPA).

However, it’s crucial to understand that CBE does not have the same enforcement authority as the IRS.

Who Is CBE Group, Inc.?

CBE Group, Inc. is a private company contracted by the IRS to collect certain overdue or inactive tax balances. It is not the IRS, its role is limited to communication and facilitation.

Some key facts:

  • CBE must follow strict guidelines and may not threaten or harass you beyond what the law allows. 
  • It cannot take enforcement measures such as wage garnishments, levies, or tax liens. Those remain tools exclusive to the IRS. 
  • CBE’s communications must respect your taxpayer rights and provide clear debt verification. 

Because of these boundaries, dealing (correctly) with CBE can sometimes offer more breathing room than immediately facing IRS enforcement.

What CBE Group Can Do — And What It Cannot Do

What CBE Can Do:

  • Contact you by letter, phone, or mail to discuss the tax debt and payment options. 
  • Supply details of the debt, including amount, tax period, and verification. 
  • Facilitate setting up installment agreements (payment plans) subject to IRS approval. 

 

  • Act as a liaison between you and IRS for collection purposes, under IRS oversight and rules. 

What CBE Can’t Do:

  • It cannot garnish wages, levy your bank accounts, or seize assets. Only the IRS has that authority. 
  • It cannot file federal tax liens. 
  • It cannot threaten criminal charges or make false claims about enforcement actions. 
  • It cannot demand payment via unapproved or suspicious methods (like gift cards or cryptocurrency). 

Understanding these limitations helps you respond safely and confidently when contacted.

How to Respond When CBE Group Reaches Out

  1. Verify the legitimacy 
    • Confirm you’ve received the CP40 IRS notice notifying assignment to CBE. 
    • Check the details (address, contact number) match known CBE information. 
    • Call the IRS at 800-829-1040 to confirm your account was assigned to CBE. 
  2. Request debt verification 
    • Ask for written proof of the debt, how it was calculated, and that CBE is authorised to collect. 
    • Make your request in writing and keep records of all correspondence. 
  3. Do not pay CBE directly 
    • You should continue to send payments directly to the IRS using official channels (IRS Direct Pay, EFTPS, check, etc.). 
  4. Explore your options 
    • Ask CBE about installment plans or other payment options. 
    • If your financial hardship is serious, you may prefer to work directly with the IRS for programs such as Offer in Compromise or Currently Not Collectible. 
    • If you dispute the debt, you can request case return to IRS. CBE must comply if requested properly. 
  5. Engage professional help early 
    • Dealing with a collection agency can be tricky. A tax attorney or enrolled agent can protect your rights, negotiate with CBE, and help prevent case escalation back to the IRS. 
    • We can help you respond, verify debt, negotiate or request your case be returned to the IRS via IRS representation or via our tax debt relief services. 

What Happens If You Ignore CBE Group

Ignoring a collection agency doesn’t make your debt vanish. In many cases, the following risks arise:

  • CBE will continue trying to contact you (letters, calls) to collect. 
  • If collection fails, CBE may return the case to the IRS for more aggressive enforcement. 
  • Once the IRS takes over again, it could initiate levies, liens, wage garnishments, or asset seizures. 
  • You lose opportunities for more flexible resolution options that may only be available while your account is in private collection status.

When CBE Returns the Case to the IRS

If CBE cannot successfully collect or negotiate, the agency will return the account to the IRS. At that point:

  • The IRS regains full authority and can deploy its strongest collection tools. 
  • They may proceed with liens, garnishments, levies or offset refunds. 
  • You may be required to deal directly with the IRS again. 

You can sometimes request your case be returned to the IRS voluntarily if you prefer to negotiate directly with them. However, handling it carefully is important because once IRS enforcement starts, your options narrow.

Why Acting Quickly Matters

  • Your tax debt accumulates interest and penalties while you wait. 
  • The longer you delay, the more risk you face of case escalation. 
  • Early intervention (when with CBE) gives you more options and flexibility. 
  • A professionally guided response can prevent missteps, safeguard your rights, and may reduce the debt cost. 

For help responding to CBE or IRS notices, contact Tax Law Advocates for a free consultation. We can act swiftly to protect you and guide you toward the best resolution.

We Can Help 

Dealing with CBE Group or IRS collections? Contact Tax Law Advocates today for a free consultation. Our experienced tax attorneys can verify your debt, stop aggressive collection calls and help you regain control of your tax situation.