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.
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.
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.
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.