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Division of Taxation

The Collection Process

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

When we notify you of a New Jersey tax deficiency or delinquency and you do not respond to the notification, we then send your account to PCR.

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 to resolve the matter. PCR 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 in addition to the Recovery Fee.

Referral Cost Recovery Fee

When you are assigned to PCR, a Referral Cost Recovery Fee is added to your tax liability. This fee is in addition to any interest or penalties.

Delinquent Returns

You will also be charged a Referral Cost Recovery Fee for delinquent tax returns. Once you file your delinquent returns, we will send an updated billing notice if you still have a tax liability. The Referral Cost Recovery Fee will not be reflected on this billing notice. It will be shown as a separate item on a Schedule of Liabilities issued by PCR.

A revised billing notice does not give you more time to make your payment to PCR. If you do not make your payment on time you will be charged additional fees.

Cost of Collection Fee

The Director will issue a Certificate of Debt if any New Jersey 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.

Contact Information

Once a debt or delinquency has been assigned to a caseworker with PCR, agents with the Division can no longer assist you with any questions about these tax matters. You must contact PCR directly.

If you do not have a direct contact phone number for your caseworker, you may call the agency's main phone number at 1-866-372-6840.

To protect your identity, collection agency employees follow the same confidentiality rules as employees in our Customer Service Center. Be sure to have your notice or a copy of your return ready before you call.

Alternately, you can send written correspondence to:

  • Pioneer Credit Recovery
    PO Box 1018
    Moorestown, NJ 08057

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 the collection agency for debt collection.

What is a Delinquency?

A delinquency is when 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 a tax liability.

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

Last Updated: Monday, 12/04/23