Collections Agencies
Keystone Collections GroupHeadquarters
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Complaints
This profile includes complaints for Keystone Collections Group's headquarters and its corporate-owned locations. To view all corporate locations, see
Customer Complaints Summary
- 223 total complaints in the last 3 years.
- 65 complaints closed in the last 12 months.
If you've experienced an issue
Submit a ComplaintThe complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.
Initial Complaint
Date:01/22/2023
Type:Service or Repair IssuesStatus:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
Moved to a new apartment in October of 2016. I paid my local taxes that year and didn't think anything of it. Fast forward to 2019 where I have moved into a house outside of keystone collections service area. I receive a notice that I have unpaid taxes from 2016. I get on the phone and prove to them that I moved in October and that the taxes were already paid. They ask for a lease agreement and I send it within 20 mins. Everything was update as they claim and I consider it resolved. I GET A LETTER IN 2020 AND GO THROUGH THE SAME THING! Here we are in 2023, 4 years later and I'm getting another notice for delinquent tax notice.
At this point I am thinking they are trying to scam people. They claim if I don't respond within 30 days the debt will be passed to a collection agency and my wages will be garnished. Last I checked, 4 years would be well outside of the 30 day window back in 2019. I monitor my credit weekly and I have not seen any negative effects. It leads me to believe that they are trying to get money from me instead of doing the job they are contracted to do. At this point I'm seriously considering legal action against them. Either the company is so incompetent they can not do their job correctly or they're attempting to extort money from the citizens on Pennsylvania.Business Response
Date: 01/24/2023
Dear *** ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In his complaint, the complainant advised that Keystone
contacted him for delinquent local earned income taxes owed for the 2016 tax
year. The complainant disputed the matter, and contended that he previously
submitted documentation and believes this is some sort of scam. Please know
that I have thoroughly reviewed the complainant’s account.
As
a preliminary matter, Keystone serves as the duly appointed Act 32 Tax Officer
for the Chester County Tax Collection District. In this capacity, Keystone is
tasked with the administration, collection and reconciliation of local earned
income taxes for all communities within Chester County that assess an earned
income tax.
The Local Tax Enabling Act (“LTEA”) requires all Pennsylvania resident
taxpayers making earned income and/or net profits to file an annual local
earned income tax return with their resident Tax Officer. 53 P.S. §
6924.502(c). It is important to note that local earned income taxes, like all
other income-based taxes, are self-reporting. That is, it is the taxpayer’s
legal obligation to file a tax return, report all income, and remit any
outstanding tax, if necessary.
Per
my review of the complainant’s account, he did not file a tax return with
Keystone for the 2016 tax year. Pursuant
to the information exchange mandate of the Local Tax Enabling Act (“LTEA”),
Keystone is supplied with limited earnings information from the Pennsylvania
Department of Revenue (“DOR”) used to identify unpaid or underpaid accounts.
See 53 P.S. § 6924.509(g).
Per my review of the complainant’s account, he was
issued an initial delinquent notice on July 9, 2019. In response, the
complainant submitted tax documentation purporting to evidence that he did not
owe the tax. However, the complainant’s local earned income tax withholdings
were not sufficient to satisfy his liability. Accordingly, my office requested
the complainant supply information as to his residency for the duration of the
2016 tax year. In response, the complainant supplied residency information for
tax years after 2019, when he moved out of Chester County. As the matter was
not resolved, the complainant was issued follow-up notices on October 24, 2021
and January 17, 2023. This complaint followed.
Understanding
that the information supplied by the DOR may be inaccurate, Keystone provides
taxpayers with ample notice prior to the initiation of adverse legal or
collection action. The Notice itself provides taxpayers with common examples of
situations in which the tax may not be due. Through the LTEA, Tax Officers such
as Keystone are vested with the right to request documentation to verify the
accuracy of a tax return, or if no tax return was filed, to ascertain the
amount of tax due. See 53 P.S. § 6924.509(f).
In response to the complainant’s assertions in his
complaint, I was able to independently verify the complainant’s residency dates
such that his local earned income tax withholdings satisfied his liability.
Accordingly, the complainant’s account has been closed.
I note that when taxpayers move during a given tax
year, they must file a part-year local earned income tax return and allocate
their income and tax accordingly. Because the complainant did not file a part
year tax return with Keystone for the 2016 tax year, the information supplied
by the DOR, on its own, indicated that the complainant resided in the subject
taxing jurisdiction for the entire tax year.
Further, the complainant alleged that Keystone’s
notice stated that his failure to respond within thirty (30) days would result
in the turnover of his account to a collection agency and that the complainant
did not notice any changes to his credit report. Please know that Keystone does
not turn over delinquent accounts to collection agencies. Further, Keystone is
not a consumer debt collector, and it is not common practice for Keystone to
report tax delinquencies to third-party credit reporting agencies. Finally, I
note that Keystone has been in contact with the complainant several times
regarding this matter. That is, Keystone did not “wait 4 years” to contact the
complainant, as alleged in the complaint.
Nevertheless, the complainant’s account has been
closed and my office considers this matter resolved. I appreciate the
opportunity provided by the BBB to resolve the concerns of taxpayers and
improve our processes.
Thank you for
your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher *. V******
General
CounselInitial Complaint
Date:01/20/2023
Type:Billing IssuesStatus:ResolvedMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
I continue to receive delinquency notices for my earned income taxes due. I only resided in Bethlehem, PA from January 2020 to April 2020 and my balance due is $710.63 which is highly incorrect. I have submitted all my documentations; W2 and lease agreement stating that I had moved. Nothing is ever done to rectify the situation and I would like discrepancy rectified and my balance to be zero'd out and account closed.Business Response
Date: 01/24/2023
**** *** *******
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In his complaint, the complainant advised that Keystone
contacted him for delinquent local earned income taxes owed to the City of
Bethlehem. The complainant disputed the matter, as he resided in the City of
Bethlehem for a portion of the tax year. The complainant previously submitted
documentation to Keystone and requested that this matter be resolved. Please
know that I have thoroughly reviewed the complainant’s account.
As
a preliminary matter, Keystone serves as the duly appointed Act 32 Tax Officer
for the Northampton County Tax Collection District. In this capacity, Keystone
is tasked with the administration, collection and reconciliation of local
earned income taxes for all communities within Northampton County that assess
an earned income tax.
The Local Tax Enabling Act (“LTEA”) requires all Pennsylvania resident
taxpayers making earned income and/or net profits to file an annual local
earned income tax return with their resident Tax Officer. 53 P.S. §
6924.502(c). It is important to note that local earned income taxes, like all
other income-based taxes, are self-reporting. That is, it is the taxpayer’s
legal obligation to file a tax return, report all income, and remit any
outstanding tax, if necessary.
Per
my review of the complainant’s account, he did not file a tax return with
Keystone for the 2020 tax year. Pursuant
to the information exchange mandate of the LTEA, Keystone is supplied
with limited earnings information from the Pennsylvania Department of Revenue
(“DOR”) used to identify unpaid or underpaid accounts. See 53 P.S. §
6924.509(g).
Per my review of the complainant’s account, he was
issued an initial delinquent notice on August 26, 2022. In response, the
complainant submitted tax documentation purporting to evidence that he did not
owe the tax based upon non-residency. This complaint followed.
Understanding
that the information supplied by the DOR may be inaccurate, Keystone provides
taxpayers with ample notice prior to the initiation of adverse legal or collection
action. The Notice itself provides taxpayers with common examples of situations
in which the tax may not be du** Through the LTEA, Tax Officers such as
Keystone are vested with the right to request documentation to verify the
accuracy of a tax return, or if no tax return was filed, to ascertain the
amount of tax du** See 53 P.S. § 6924.509(f).
Based upon a review of the documents supplied by
the complainant, his account has been closed based upon part-year residency. It
is important that taxpayers file part-year tax returns for all taxing
jurisdictions in which they reside in a given tax year.
I appreciate the opportunity provided by the BBB to
resolve the concerns of taxpayers and improve our processes.
Thank you
for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
** V******
General
CounselCustomer Answer
Date: 01/24/2023
Better Business Bureau:
I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.
Regards,
***** ******Initial Complaint
Date:01/20/2023
Type:Billing IssuesStatus:ResolvedMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
Account #: ********
Keystone Collections Group keep sending correspondence stating that I owe local earned income tax in the amount of $1,143.47 to Darby Borough. First, I don't live nor work in Darby or Darby Borough. I live in Collingdale as indicated by the address on their letters and in their records. Second, I live in the Southeast Delco School District. I receive my tax bills which clearly states "Borough of Collingdale" and "Southeast Delco School District" from our own tax collector, Diane H*****. Furthermore, I looked up my address in the Municipal Statistics database and it also clearly states that the Resident EIT is 0.000% for both the boro and school district. According to the PA Department of Revenue, "Pennsylvania tax records are confidential and may be released only to the taxpayer or pursuant to a release signed by the taxpayer". I did not sign a written informed consent form to anyone especially Keystone Collections regarding my personal data. So wherever KCG is receiving their information from is incorrect. Please correct your misinformation and stop sending these ridiculous letters. The burden of proof is on you not the taxpayers.Business Response
Date: 01/25/2023
Dear Ms. ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In her complaint, the complainant advised that Keystone
contacted her for delinquent local earned income taxes owed to Darby Borough.
The complainant disputed the matter, as she resided in the Borough of
Collingdale, which does not assess a local earned income tax. The complainant
further questioned how her personal information was supplied to Keystone. Please
know that I have thoroughly reviewed the complainant’s account.
As
a preliminary matter, Keystone serves as the duly appointed Act 32 Tax Officer
for the Delaware County Tax Collection District. In this capacity, Keystone is
tasked with the administration, collection and reconciliation of local earned
income taxes for all communities within Delaware County that assess an earned
income tax.
Pursuant to the information exchange mandate of the Local Tax Enabling Act (“LTEA”), Keystone is supplied with limited
earnings information from the Pennsylvania Department of Revenue (“DOR”) used
to identify unpaid or underpaid accounts. See 53 P.S. § 6924.509(g). As a duly
appointed Tax Officer, Keystone is authorized to handle confidential taxpayer
information subject to the provisions of the LTEA, which prohibit the
dissemination of confidential taxpayer information except for official
purposes. See 53 P.S. § 6924.514.
Based on a comparison between this information and
Keystone’s records, this discrepancy was identified. Specifically, a comparison
between the DOR information and Keystone’s records placed the complainant in
Darby Borough for the tax years at issue. Per my review, the complainant’s
employer withheld and remitted Darby Borough resident local earned income tax
on the complainant’s behalf for several quarters of tax year 2020. The complainant was issued delinquent local
earned income tax notices on May 31, 2022, September 20, 2022 and January 17,
2023. The complainant did not respond to Keystone until the filing of this
complaint.
Understanding
that the information supplied by the DOR may be inaccurate, Keystone provides
taxpayers with ample notice prior to the initiation of adverse legal or
collection action. The Notice itself provides taxpayers with common examples of
situations in which the tax may not be due. Through the LTEA, Tax Officers such
as Keystone are vested with the right to request documentation to verify the
accuracy of a tax return, or if no tax return was filed, to ascertain the
amount of tax due. See 53 P.S. § 6924.509(f).
In response to the complainant’s assertions in her
complaint, I was able to independently verify that the complainant did not
reside in Darby Borough, and that her employer’s remittance of local earned
income tax on her behalf was an error. Accordingly, the complainant’s account
has been closed.
I appreciate the opportunity provided by the BBB to
resolve the concerns of taxpayers and improve our processes.
Thank you
for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
CounselCustomer Answer
Date: 01/26/2023
Better Business Bureau:
I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.
Regards,
****** ********Initial Complaint
Date:01/17/2023
Type:Billing IssuesStatus:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
Every year this company sends me a delquient tax bill for taxes I don't or never owned. This year was for Aston township school taxes I proved I did not owe it know they try to say i owe local income tax for upper Chichester township I had to upload a w2 showing i do not as that local income tax was paid to the township, I worked in. I am sick of this I am too old for this crap. I want them to stop sending me tax bills for taxes I don't own! I feel like they are just sending me bills in hopes I pay for tax I do not own. I want an apology from them and if they continue to send me bills for taxes, I do NOT owe I am going to sue in court for damages because this unethical practice is causing me undo stress and affecting my health.Business Response
Date: 01/20/2023
Dear Ms. ******:
Thank you for contacting Keystone
Collections Group (“Keystone”) regarding this complaint ID number. In his complaint,
the complainant advised that he received delinquent local earned income tax
notices for the 2020 tax year from Keystone, which he disputes. Specifically,
the complainant advised that after he proved he did not reside in one taxing
jurisdiction, Keystone sent him another notice for the 2020 tax year. Please
know that I have thoroughly reviewed the complainant’s account in response to
this complaint.
As a preliminary matter, Keystone
serves as the duly authorized Act 32 Tax Officer for the Delaware County Tax
Collection District. In this capacity Keystone administers and collects local
earned income taxes from all communities within the taxing district that assess
an earned income tax.
The Local Tax Enabling Act (“LTEA”) requires all Pennsylvania resident
taxpayers making earned income and/or net profits to file an annual local
earned income tax return with their resident Tax Officer. 53 P.S. §
6924.502(c). It is important to note that local earned income taxes, like all
other income-based taxes, are self-reporting. That is, it is the taxpayer’s
legal obligation to file a tax return, report all income, and remit any
outstanding tax, if necessary.
Per my review of the complainant’s
account, he did not file a tax return with Keystone for the 2020 tax year. In
fact, the complainant and his spouse have not filed a tax return with Keystone
since the 2017 tax year.
Pursuant to the information
exchange mandate of the LTEA, the Pennsylvania Department of Revenue (“DOR”)
supplies Keystone with limited earnings information to verify tax filings and
identify potential delinquent accounts. There is an approximately two (2) year
delay in the DOR’s provision of this data to Keystone.
After receipt of this earnings
information, this discrepancy was identified. Specifically, the complainant was
issued an initial delinquent notice on September 16, 2022. Based upon a
comparison of the DOR’s information and Keystone’s records, the complainant’s
account was placed in Aston Township / Penn Delco School District for the 2020
tax year. In response to the delinquent notice, the complainant supplied my
office with information indicating that he did not reside in Aston Township,
but resided in Upper Chichester Township.
Upper Chichester Township is also
contained within the Delaware County Tax Collection District. As the
complainant did not file a tax return or otherwise remit payment, he was issued
an initial delinquent notice on January 12, 2023. This notice updated the
taxing authorities from Aston Township / Penn Delco School District to Upper
Chichester Township. This complaint followed.
Understanding
the information provided by the DOR may contain inaccuracies, Keystone affords
taxpayers with the opportunity to supply documentation evidencing that the tax
is not due, based upon residency, tax withholdings, credits, etc. In this case,
the complainant supplied Keystone with a copy of his W-2 indicating local
earned income tax withholdings. As a result, the complainant’s account was
credited accordingly. However, a balance remains due on this account, as the
complainant’s W-2 does not account for all of the income reported by the DOR. I
note that the complainant’s account indicates that he filed jointly with a
spouse, so it is possible that the additional income is associated with the
complainant’s spouse. The complainant’s account has been adjusted, and a new
notice listing the updated balance has been mailed to the complainant.
Nevertheless,
it is crucial that taxpayers file tax returns with their resident Tax Officer
in accordance with their statutory obligation. The filing of a tax return would
avoid the issues the complainant has outlined in his complaint.
I appreciate the opportunity provided by the BBB to
resolve the concerns of taxpayers and improve our processes.
Thank you
for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
CounselInitial Complaint
Date:01/09/2023
Type:Billing IssuesStatus:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
Keystone is attempting to collect on local tax I do not owe. They are alleging we owe tax for being in the Central Dauphin School District and Lower Paxton Township in the 2018 year. But I mailed them a copy of my W2 filed with the IRS which shows I did not live there during that time. They wrote back asking me to share a copy of my W-2, which I had already sent them. They just sent a letter today saying they are going to garnish my wages. I do not owe money, and I have shown proof. This collection agency is a bully trying to use scare tactics to scam money from people.Business Response
Date: 01/16/2023
Dear Ms. ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In his complaint, the complainant advised that they were
issued a delinquent local earned income tax (“EIT”) notice from Keystone
seeking taxes which they do not owe based upon residency. The complainant
advised that they submitted a copy of their W-2 “filed with the IRS” as
evidence of their residency, and that Keystone requested further documentation.
Please
know that I have thoroughly reviewed the complainant’s account. Pursuant to the
information exchange mandate of the Local Tax Enabling Act (“LTEA”),
Keystone is supplied with limited earnings information from the Pennsylvania
Department of Revenue (“DOR”) used to identify unpaid or underpaid accounts.
See 53 P.S. § 6924.509(g). There is unfortunately an unavoidable delay in the
provision of this limited earnings information. Based on a comparison between
this information and Keystone’s records, this discrepancy was identified.
Understanding
that the information supplied by the DOR may be inaccurate, Keystone provides
taxpayers with ample notice prior to the initiation of adverse legal or
collection action. The Notice itself provides taxpayers with common examples of
situations in which the tax may not be due. Through the LTEA, Tax Officers such
as Keystone are vested with the right to request documentation to verify the
accuracy of a tax return, or if no tax return was filed, to ascertain the
amount of tax due. See 53 P.S. § 6924.509(f).
Per
my review the complainant was issued an initial delinquent notice on May 20,
2022. In response, the complainant and their spouse supplied a document
associated with their Federal 1040 Income Tax Return. This document is not a
W-2; it does not contain any income or tax withholding information. Rather, it
states the names of the taxpayers and an address. Moreover, while the address
listed on this document is located within a different municipality than Lower
Paxton Township, this address is also located within the Dauphin County Tax
Collection District. Nevertheless, this document is not instructive as to where
the taxpayers resided for the duration of 2018; rather, it indicates the
address in which the taxpayers resided when they filed their 2018 Federal 1040
Income Tax Return.
As
this document was not instructive, my office sent the complainant a document
request seeking “proof of earnings” in the form of a W-2 or 1099, and “proof of
residency” for the 2018 tax year. The complainant did not respond to this
request. Accordingly, on January 10, 2023, a Notice of Intent to Garnish Wages was sent to the complainant via Certified Mail. The LTEA authorizes the
collection of delinquent local earned income taxes by wage garnishment. 53 P.S.
§§ 6924.702-703.
The Notice of Intent to Garnish Wages affords the complainant with fifteen
(15) days to reconcile their account. Accordingly, if the complainant disputes
the imposition of tax, they may supply Keystone with documentation as
previously requested. Keystone’s online Pay systems allows taxpayers to
conveniently and securely upload documents. Upon receipt, my office will review
and adjust the complainant’s account, if necessary.
I appreciate the opportunity provided by the BBB to
resolve the concerns of taxpayers and improve our processes.
Thank you
for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
CounselCustomer Answer
Date: 01/23/2023
Better Business Bureau:
I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.
[attached is my wife’s W2 showing our address for the 2018 tax year. Her employer updated her address, whereas mine did not.]I reject but just to add more proof.
I don’t have my physical W2 on hand, but I have the information from my W2 for when I filed my taxes on FREETAXUSA. As I stated, my former employee did not update my address when I moved, but my wife’s employer did. And we filed jointly.The reason it was never official was because it was my brother’s home. Although actually it was his wife’s legally. So we never had bills in our name or anything. But the fact is we lived there. Not in lower Paxton twp or Central Dauphin SD.
The real complaint about Keystone is the fact that they should not be able to just go after people for money they don’t owe. Why do I have to prove I didn’t live there? Where is their proof I did? Do they have utility bills in my name for the whole year? Or are they going off of my tax information for 2017? People move. All the time. I’ve obviously paid my local taxes when I’ve actually owed them. Otherwise I’d have a lot more collections coming after me.
Regards,
**** ******Initial Complaint
Date:01/08/2023
Type:Billing IssuesStatus:ResolvedMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
On August 19, 2022, Keystone collection grp (KCG) billed us for 2020 earned income taxes (account N. A *******, invoice *********) for 1447,80 $.
On August 21, 2022 -USPS first class mail tracking # ********************-
Under the Fair Debt Collection Practices Act (FDCPA), we requested proof that we are indeed the party you are asking to pay this debt, and there is some contractual obligation that is binding to pay this debt and a request for VALIDATION made under 15 USC 1692g Sec. 809 (b) of the FDCPA.
On August 29, 2022, KCG claimed they were not required to comply with the FDCPA and did not provide any evidence.
Unfortunately, this is inaccurate; according to title 26, internal revenue code, point (G)
Quote
"
The provision of the FDCPA (15 USC 1692 et seq) shall apply to any qualified tax collection contract."
unquote
On 09/03/22, USPS first class mail tracking # ********************
We provided the following evidence:
We moved to Downingtown, pa, in December 2020, so we cannot claim full-year residence in 2020. A copy of the rental agreement, labeled as annex 1, was provided.
W-2 indicating that local earned income taxes were withheld in Philadelphia (our former residence until November 30, 2022), document labeled as annex 2.
On Friday, January 6, 2023, KGC falsely claimed we failed to provide documentation supporting any dispute or account adjustment.
The amount due jumped from 1,447.80 $ to 1,696.39; no tax balance summary was provided
Taxpayers shouldn't have to pay for KCG incompetence.Business Response
Date: 01/13/2023
Dear Ms. ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In his complaint, the complainant invoked certain rights
under the Federal Fair Debt Collection Practices Act (“FDCPA”). Further, the
complainant disputed the delinquent balance on his local earned income tax
account. Please
know that I have thoroughly reviewed the complainant’s account.
Please
be advised that my office addressed the taxpayer’s concerns via letter of
August 29, 2022. Said letter was in response to correspondence from the
complainant wherein he requested “debt validation” and certain documentation
from Keystone. Further, the complainant alleged that Keystone engaged in a
“defamation” of his character.
Please know Keystone is the duly
appointed Tax Officer for the Borough of Downingtown, Downingtown Area School
District and the Chester County Tax Collection District. In this capacity, Keystone is tasked with the
administration, collection and remittance of local earned income taxes for all
municipalities and school districts within the Tax Collection District that
levy a local earned income tax.
Keystone is not a third party debt
collector or commercial creditor; that is, this matter originates and remains
with Keystone. State law requires all residents to file a local earned income
tax return and remit payment to their resident tax officer. 53 P.S. §
6924.502(a). In the case of residents of the Chester County Tax Collection District,
such tax returns must be filed with Keystone.
Further,
please be advised that the FDCPA does not apply to collection efforts of taxes.
Keystone is not a “debt collector” under the FDCPA. See, Henson v. Santander Consumer
USA, Inc., __ U.S. __ , 137 S. Ct. 1718 (2017). A threshold requirement for application of
the FDCPA is that prohibited practices are used in an attempt to collect a
“debt” under the FDCPA. Zimmerman v.
HBO Affiliate Group, 834 F.2d 1163, 1167 (3d Cir. 1987). Courts have consistently held that the FDCPA
applies only to consumer debt, which is distinguishable from tax debt. That is, “debt” covered under the FDCPA “is
created whenever a consumer is obligated to pay money as a result of a
transaction whose subject is primarily for personal, family or household
purposes.” Pollice v. National Tax
Funding, 225 F.3d 379, 401 (3d Cir. 2000). Tax obligations, on the other hand, result from the fact of citizenship,
residency and/or property ownership. As Keystone administers taxes, we are not
required to comply with the FDCPA.
In
disputing the above, the complainant cites a provision of the Internal Revenue
Code (“IRC”.) As the IRC pertains only to Federal Income Taxation, its
provisions are irrelevant to Pennsylvania state and local income taxation. The
case law cited above makes clear that the FDCPA does not apply to Keystone’s
efforts. Nevertheless, Keystone’s actions have not violated any consumer
protection statutes.
Please
know that Tax Officers such as Keystone are vested
with the right to request documentation to verify the accuracy of a tax return,
or if no tax return was filed, to ascertain the amount of tax due. 53 P.S. §
6924.509(f). I further note that the complainant has never filed a tax return
with Keystone. Further, the complainant inquired as to the increase in
his delinquent balance. Please be advised that the updated balance reflects
accrued statutory penalty and further interest accrual. See, 53 P.S. § 6924.502(e)(4); 53 P.S. § 6924.509(i).
My office previously invited the
complainant to supply documentation in support of a substantive dispute to
taxation. To date, no such documentation has been received. However, based upon
the documentation provided to the BBB with this complaint, my office adjusted
the complainant’s account for part-year residency and issued the complainant’s
spouse credits for non-resident Philadelphia City Wage Tax withheld from her
pay. The complainant’s balance has been reduced, and he will receive further
correspondence detailing his account from Keystone.
I appreciate the opportunity provided by the BBB to
resolve the concerns of taxpayers and improve our processes.
Thank you
for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
Associate
General CounselCustomer Answer
Date: 02/06/2023
Better Business Bureau:
I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.
I have reviewed the response made by the business about complaint ID ********. We are glad the very same documents received by KCG on Sept 9, 2022, are now accepted. However, we duly noted KCG still FALSELY claims we didn't supply documentation (see proof of delivery ) in support of a substantive dispute to taxation.
According to the KGC reply
quote
my office adjusted the complainant's account for part-year residency and issued the complainant's spouse credits for non-resident Philadelphia City Wage Tax withheld from her pay. The complainant's balance has been reduced, and he will receive further correspondence detailing his account from Keystone.
unquote
We received no reduced balance but a request for further documents; see attached.
Taxpayers should not waste their time and escalate to BBB to deal with KCG
Regards,
********* **********Business Response
Date: 02/20/2023
Dear Ms. ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In rejecting my office’s previous response, the
complainant alleged that he previously provided requested documentation to
Keystone.
I
have further reviewed the complainant’s account. My office did receive
documentation from the complainant sufficient to issue some credit. However, on
January 19, 2023, my office requested additional W-2s because all of the
complainant and his spouse’s income was not accounted for. As outlined
previously, Keystone has the right to request such documentation. See, 53 P.S. § 6924.509(f). Upon
receive of the requested documentation, my office will adjust the complainant’s
account, if necessary.
I appreciate the opportunity provided by the BBB to
resolve the concerns of taxpayers and improve our processes.
Thank you
for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******General Counsel
Customer Answer
Date: 02/21/2023
Better Business Bureau:
I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.
Regards,
********* **********Initial Complaint
Date:12/20/2022
Type:Billing IssuesStatus:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
Issue ongoing since July 2022. Requested exemption from Occupational Privilege Tax, City of Harrisburg, PA. Tax collector Keystone Collections Group does not want to budge, even after Office of Attorney General inquiry. "Counsel" for tax collector "advising" that "This tax is levied on all adults regardless of home ownership (Invoice, file attached)." I "advise" that as "transient" in the City of Harrisburg, PA, I am "entitled" to an exemption because "Both property owners and renters are subject to the tax (Invoice, same file attached)." I wonder how a homeless, unemployed individual who neither owns nor rents property could be expected to make payment of Occupational Privilege Tax. I want an exemption. The average homeless, unemployed City of Harrisburg, PA "resident" would probably just let the invoice rot. As payment of $132.00 is expected from me in 11 calendar days - not business days - I want an exemption.Business Response
Date: 12/22/2022
**** *** ******
Thank you for providing me with
the above-referenced complainant. Please
know that I have reviewed the complainant’s account.
Keystone serves as the
Occupational Privilege Tax collector for the Harrisburg City School District. The District levies this flat tax on all employed
persons residing in the School District. As is explained on the tax bill, an individual does not need to own or
rent property to be considered a resident. As was explained to the complainant previously, the address provided to
Keystone as his residence is within the District. While the complaint states that he is
transient, all evidence suggests that despite not owning property or renting
property he still resides within the District. For instance, other tax filings
submitted to Keystone indicate that the complainant resides within the District. Additionally,
I previously explained to the complainant there are multiple reasons listed on
the back of the bill which would remove the tax liability.
Accordingly, I am unable to grant
the complainant the relief he is seeking. Thank you for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
E. V******
Associate
General CounselCustomer Answer
Date: 12/22/2022
Better Business Bureau:
I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.
[To assist us in bringing this matter to a close, we would like to know your view on the matter.]From ****** ***** I reject the "guidance" that being homeless in a district makes any potential taxpayer a "resident of the district." The attorney continues to cling to the notion. I would be interested in knowing how many Occupational Privilege Tax invoices go unpaid for months or years. I would be interested in knowing about what payment plans Keystone Collections makes in the infinite wisdom of Keystone Collections, because their counseling is becoming tedious. I overstated my tax liability on a pre-pandemic Personal Income Tax form, for example, and Keystone Collections took three years to adjust their records, only after late penalties had accrued. While I do not invite legal issues with Keystone Collections, how, for example, does Keystone Collections propose to collect Occupational Privilege Tax from some homeless and unemployed? Foooooood stamps? I'm very intrigued. If the Respondent cannot figure out how to exempt Occupational Privilege Tax from someone homeless, unemployed, and childless, I will look for another Legitimate Business Entity that can, or the invoice will likely rot.
Regards,
****** ****Initial Complaint
Date:12/10/2022
Type:Billing IssuesStatus:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
Keystone Collections is attempting to extort my wife and I for money we do not owe them. I am active duty military and do not pay state taxes to the state of Pennsylvania. It is a state law that active duty military member do not need to pay state taxes. I file my taxes every year.
Keystone is requesting taxes from 2013. I have already contacted Keystone and provided proof of my current active duty status, that I have been in since 2007, and that I filed my taxes properly in 2013. Luckily I had a copy of my taxes from 2013. The state of PA does not keep records for more than 7 years. So why Keystone is trying to collect taxes from over 9 years ago is beyond me. I am unsure of how to proceed. I have already proven I paid my taxes for the year 2013, that I am currently in the military, and all the other hoops they have made me jump through. They have threatened to call the sheriff on me. I have contact the on base legal office and they have advised me to just ignore them as they have no real jurisdiction and are probably just trying to bully me into paying. If that’s true they are truly a disgusting company.Business Response
Date: 01/05/2023
RE: Complaint ID: ********
**** *** ******
Thank you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In his complaint, the complainant advised that he was issued a delinquent
local earned income tax (“EIT”) notice from Keystone seeking taxes which he and his wife “do
not owe” because he was an active duty member of the military. Further, the complainant
advised that Keystone was attempting to “extort” money from the taxpayer and his spouse.Please know that I have thoroughly reviewed the complainant’s account. Pursuant to the
information exchange mandate of the Local Tax Enabling Act (“LTEA”), Keystone is supplied
with limited earnings information from the Pennsylvania Department of Revenue (“DOR”) used
to identify unpaid or underpaid accounts. See 53 P.S. § 6924.509(g). There is unfortunately an
unavoidable delay in the provision of this limited earnings information. Based on a comparison
between this information and Keystone’s records, this discrepancy was identified.Understanding that the information supplied by the DOR may be inaccurate, Keystone
provides taxpayers with ample notice prior to the initiation of adverse legal or collection action.
The Notice itself provides taxpayers with common examples of situations in which the tax may
not be due. Through the LTEA, Tax Officers such as Keystone are vested with the right to
request documentation to verify the accuracy of a tax return, or if no tax return was filed, to
ascertain the amount of tax due. See 53 P.S. § 6924.509(f).Per my review of the complainant’s account, he was issued an initial delinquent notice on
June 20, 2016. Neither the complainant nor his wife responded to this notice. Accordingly,
Keystone sent the complainant and his wife a follow-up notice on April 22, 2022. In response,
the complainant submitted documentation evidencing his military status. In response, Keystone
issued a document request notice seeking documentation, such as a W-2 and/or 1099, evidencing
the complainant’s earnings. The complainant provided the same. However, the complainant’s
spouse earned taxable net profits during the tax year at issue for which Keystone was not
provided documentation. As such, another document request was issued for documents, such as a
Schedule C or Form RK-1, evidencing the spouse’s profits. This complaint followed.My office has agreed to close this account, as the tax liability on the outstanding net
profits is negligible. Accordingly, the complainant’s account has been closed and this matter
resolved.Finally, the complainant contended that Keystone, presumably through document
requests, attempted to extort money from he and his spouse. As mentioned, Keystone relies on
earnings information from the DOR; in this case, Keystone did not and could not have known
that the complainant’s compensation was associated with his active duty military status..
However, as with all areas for which Keystone collects, taxpayers who dispute delinquent
notices may supply Keystone with documentation in support of their dispute. Keystone does not
wish to collect tax for which its clients are not owed.
I appreciate the opportunity provided by the BBB to resolve the concerns of taxpayers
and improve our processes.Thank you for your attention to this matter.
Very truly yours,KEYSTONE COLLECTIONS GROUP
By:
Christopher E. V******* EsquireCustomer Answer
Date: 01/10/2023
Better Business Bureau:
I have reviewed the response made by the business in reference to complaint ID ********* and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.
Since the company has a file on my wife and I, they could likely already see on my documentation (for tax year 2016, which they previously requested) that I’ve been active duty since 2007, my wife and I have been married and filing jointly since 2009, and neither of us has earned money physically within the state of Pennsylvania since 2009. They use threatening language in their letters, and employ tactics that make one question whether it’s legitimate. If they wanted proof and not money, maybe request the information without the huge bill up in the corner. Or maybe their communication with the tax office is lacking. Whatever the case, this is the least professional experience either of us have ever experienced.I would just like to point out all of the similar situations you can read about the company on their reviews, as well as here on the BBB’s website.
Very Respectfully,
********* *****Initial Complaint
Date:12/07/2022
Type:Billing IssuesStatus:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
On Thursday September 1, 2022, I contacted the Keystone Collection Group in reference to some mail I received at **** **** ****** ************. The issue at hand was in relation to the 2020 tax year. Keystone Collection Group for some reason believed I was living in South Lebanon Township.
They responded as follows,
******,
In regards to local taxes, the onus falls upon the taxpayer to prove the tax is not owed. If you were not a resident of the area in question you will need to provide the appropriate documentation. Keystone will not be contacting anyone on your behalf. Please refer to the back of your bill for information on how to submit documentation for review.
In response to this as follows,
I have provided a scanned copy of all my email exchanges with **** ****** Property Management that oversees the *** ***** ********** * *********. I resided at *** ********** **** ******** ******* which is in South Lebanon Township, Lebanon County. If you look through the email exchanges, you will see that my lease termination date is 6/30/19 and my move out date was 6/28/19 from *** ********** **** ******** ** *****. There was an error on my part for failing to update my W-2 information. I was a little distraught being that my dad had a massive stroke.
I hope this information helps resolve this tax collection issue for which I did not reside at the location in 2020 or anywhere in South Lebanon Township to owe a tax.
I am seeking a resolution for this collection company to stop harassing me and falsely billing me. I have provided all of the requested documentation. It seems as though they are going to remain ongoing in their efforts to falsely bill me. This company has a history of their unfair business practices. The next step is to file a complaint with the attorney general’s office.Business Response
Date: 12/09/2022
Dear Ms. *****:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In his complaint, the complainant advised that he was
issued a delinquent local earned income tax (“EIT”) notice seeking taxes for an
area in which he did not reside. Further, the complainant claimed that he
submitted documentation to Keystone but the matter remains unresolved.
Please
know that I have thoroughly reviewed the complainant’s account. Pursuant to the
information exchange mandate of the Local Tax Enabling Act (“LTEA”),
Keystone is supplied with limited earnings information from the Pennsylvania
Department of Revenue (“DOR”) used to identify unpaid or underpaid accounts.
See 53 P.S. § 6924.509(g). There is unfortunately an unavoidable delay in the
provision of this limited earnings information. Based on a comparison between
this information and Keystone’s records, this discrepancy was identified. Specifically,
the DOR information evidenced that the complainant filed his PA 40 Personal
Income Tax Return as a resident of the South Lebanon Township /
Cornwall-Lebanon School District for the tax year at issue.
Understanding
that the information supplied by the DOR may be inaccurate, Keystone provides
taxpayers with ample notice prior to the initiation of adverse legal or
collection action. The Notice itself provides taxpayers with common examples of
situations in which the tax may not be due. Through the LTEA, Tax Officers such
as Keystone are vested with the right to request documentation to verify the
accuracy of a tax return, or if no tax return was filed, to ascertain the
amount of tax due. See 53 P.S. § 6924.509(f).
Per
my review of the complainant’s account, he was issued an initial delinquent
notice on August 19, 2022. In response, the complainant submitted documentation
evidencing his residency outside of the taxing jurisdiction. Accordingly, the
complainant’s account has been closed and this matter resolved.
Finally,
the complainant contended that Keystone “has a history” of “unfair business
practices.” As mentioned, Keystone relies on earnings information from the DOR;
in this case, the information evidenced the complainant’s incorrect residence. Further,
the complainant admitted that “there was an error” on his part for failing to
update his W-2 information. Nevertheless, as with all areas for which Keystone
collects, taxpayers who dispute delinquent notices may supply Keystone with
documentation in support of their dispute. Keystone does not wish to collect
tax for which its clients are not owed.
I appreciate the opportunity provided by the BBB to
resolve the concerns of taxpayers and improve our processes.
Thank you
for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
E. V******
Associate
General CounselCustomer Answer
Date: 12/12/2022
Better Business Bureau:
I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.
Regards,
****** ******Initial Complaint
Date:12/03/2022
Type:Billing IssuesStatus:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
Keyston collections has sent multiple delinquent tax penalties. It is saying the taxes we owe are to a township we have never lived or worked in. First was directed to me second to my wife. The total amount of earned income isn’t correct. I tried to contact them and they just asked me for w2s and more info. I’m not comfortable sending them that. Now they are threading to garnish wages. I feel as if this is a scam but they seem to be a real company. Thank you for any helpBusiness Response
Date: 12/07/2022
Dear Ms. *****:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In his complaint, the complainant advised that he and his
spouse received delinquent local earned income tax notices from Keystone for a
township in which they neither lived nor worked. The complainant stated his
belief that this is a scam. Please know that I have thoroughly reviewed the
complainant’s account.
As a preliminary
matter, Keystone serves as the duly authorized Act 32 Tax Officer for the Delaware
County Tax Collection District. In this capacity Keystone administers and
collects local earned income taxes from all communities within the taxing
district that assess an earned income tax.
The Local Tax Enabling Act (“LTEA”) requires
all Pennsylvania resident taxpayers making earned income and/or net profits to
file an annual local earned income tax return with their resident Tax Officer.
53 P.S. § 6924.502(c). Per my review of the complainant’s account, neither he
nor his spouse has ever filed a tax return with Keystone.Pursuant to the information exchange
mandate of the LTEA, the Pennsylvania Department of Revenue (“DOR”) supplies
Keystone with limited earnings information to verify tax filings and identify
potential delinquent accounts. There is an approximately two (2) year delay in
the DOR’s provision of this data to Keystone.After receipt of
this earnings information, which reflected the complainant’s residence in the
township at issue, Keystone issued the complainant and his spouse an initial
delinquent notice on September 16, 2022 for the 2020 tax year. Understanding
that the information supplied by the DOR may be inaccurate, Keystone’s notices
outline common scenarios in which a taxpayer may not owe tax, such as
non-residency or the availability of unclaimed credits.In response, on
September 27, 2022, the complainant submitted an inquiry on Keystone’s online
customer service portal about the nature of the bill he received. The same day,
a Keystone representative responded that the bill was for “2020 earned income
tax” and that if he disputed the bill, he could upload documentation, such as a
W-2, evidencing that he did not owe the tax. In response, on October 4, 2022,
the complainant responded “Fake company fraud being reported.”
On November 11,
2022, the complainant was issued a Notice
of Intent to Garnish Wages via Certified Mail. The LTEA authorizes the
collection of delinquent local earned income tax by wage garnishment. 53 P.S.
§§ 6924.702-703.Keystone is not
conducting a “scam.” Rather, Keystone is a duly authorized Act 32 Tax Officer
regulated by the Pennsylvania Department of Community and Economic Development.
At this time, the complainant’s account balance stands.As an Act 32 Tax
Officer, Keystone is required to adhere to the strict confidentiality
provisions of the LTEA. 53 P.S. § 6924.514. Accordingly, if the complainant
advances a substantive dispute, supported by tax documentation, that he and his
wife do not owe the tax or it was previously paid, my office will review and adjust
his account accordingly.
I
appreciate the opportunity provided by the BBB to resolve the concerns of
taxpayers and improve our processes.
Thank
you for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
E. V******
Associate
General Counsel
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