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Division of Taxation

The Collection Process

The Division contracts with a private collection company to collect overdue taxes (deficiencies) and outstanding returns (delinquencies). The current contractor is Pioneer Credit Recovery.

If you’re contacted by this agency, please respond directly to your caseworker about your case.

Collection agency employees must follow the same confidentiality rules as employees of the Division.

Why your case was sent to a collection agency

If we notify you that you have a New Jersey tax deficiency or delinquency and you do not respond to the notification, we will send your account to a collection agency.

What is a Deficiency?

A deficiency is when you file a tax return and have an amount due, but do not pay the tax in full.

If we send you a bill and you do not pay it, we will refer you to a collection agency for debt collection.

What is a Delinquency?

A delinquency is when we have evidence that you should have filed a tax return, but did not.

If you fail to file a required tax return, your account is considered delinquent and we will assess you a tax liability.

If you do not file all your missing returns, we may refer you to a collection agency.

How the Process Works

  • The agency will review the debt and assign your account to a caseworker.
  • The caseworker will mail you an initial contact letter along with an updated Schedule of Liabilities detailing the current balance due.
  • If you do not respond to the initial contact letter, your caseworker will attempt to contact you (or your authorized representative) by phone in an effort to resolve the matter. The contracted collection agency will never ask you to wire money or load a rechargeable money card as a way to pay a New Jersey tax debt. (See Tax Collections Scams for more information).
  • If the debt is still outstanding, a Certificate of Debt (COD) is entered with the Clerk of the New Jersey Superior Court. A COD has the same force and effect as a Docketed Judgment adjudicated in any court of law. If a COD is issued for the outstanding liability, a Cost of Collection Fee is added to the docketed judgment and becomes part of the outstanding liability.
  • Once the COD is in place, the case is returned to the Division for further collection.
  • All cases with COD’s are assessed a Cost of Collection which is in addition to the Recovery Fee.

Referral Cost Recovery Fee

The Referral Cost Recovery Fee rate is 10.7%

A Referral Cost Recovery Fee is added to your tax liability when you are assigned to the agency. This fee will be in addition to any interest or penalties. You will also be charged a Referral Cost Recovery Fee for delinquent tax returns.

Once you file your delinquent returns, you may receive an updated billing notice from the Division if you still have a tax liability. The Referral Cost Recovery Fee will not be reflected on this billing notice. It is shown as a separate item on the Schedule of Liabilities sent to you from the agency.

Any revised billing notice sent to you from the Division does not give you more time to make your payment to the agency. If you do not make your payment on time you will be charged additional fees.

Cost of Collection

The Director will issue a Certificate of Debt if any State tax is not paid within the time prescribed by law.

The Director also may charge a fee for the cost of collection. These fees are in addition to any interest or penalty, or both, otherwise allowed by law.

How to Contact the Collection Agency

Pioneer Credit Recovery
PO Box 1018
Moorestown, NJ 08057

By Phone: 1-866-372-6840

Last Updated: Wednesday, 04/22/20