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
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.
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.
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:
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.