Business Profile

Collections Agencies

Keystone Collections Group

Headquarters

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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.

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The 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:04/16/2025
Type:Billing Issues
Status:
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.
The Keystone Collections Group garnished two payments of $****** from my pay check and another amount of ****** from my husbands paycheck. They claimed that I owed back taxes totaling $414.60 to the Lansdowne PA county from 2022 which was incorrect and because we filed married that took money from his check as well. Upon further investigation we found out that this charge was incorrect. I sent them my W2 form from that year showing that those taxes had been paid. They sent a letter stating that we would receive a refund for the total amount taken within 10 days. I have only received ONE refund amount of ******. We still have NOT received the other amount of the incorrect garnishments. I have been calling and calling with no response.
Business Response
Date: 04/22/2025
Dear Ms. ******************** you for contacting Keystone Collections Group (Keystone) regarding this complaint ID number. In her complaint, the complainant advised that Keystone garnished her and her husbands wages to collect delinquent local earned income taxes (EIT.) The complainant advised that her and her husbands wages were garnished in excess of the funds that were due and they have not received all the funds back. Please know that I have thoroughly reviewed the complainants account.

As a preliminary matter, Keystone serves as the Act 32 Tax Officer for the Delaware County Tax Collection District and the local taxing bodies therein. In this capacity, Keystone is tasked with the administration, collection, and reconciliation of local EIT for all communities within the Tax Collection District that assess an EIT.

The Local Tax Enabling Act (****) requires all Pennsylvania resident taxpayers making earned income and/or net profits to file a local EIT return with their resident Tax Officer. 53 P.S. 6924.502(c). It is important to note that local EIT, like all other income-based taxes, are self-reporting. Per my review, the complainant did not file a tax return with Keystone for the 2022 tax year.

Pursuant to the information exchange mandate of the ***** Keystone is supplied with limited earnings information from the ********************************** (***) used to identify unpaid or underpaid accounts. See 53 P.S. ***********. The income figures listed on the delinquent notices at issue were taken directly from the earnings information supplied by the **** which represents figures the complainant and her spouse listed on their PA 40 personal income tax return for the 2022 tax year.

Understanding that the information supplied by the *** may be inaccurate, Keystone provides taxpayers with ample notice prior to the initiation of adverse legal or collection action. Through the ***** 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). Moreover, the **** authorizes the collection of delinquent EIT by wage garnishment. 53 P.S. 6924.702-703.

Per my review, the complainant was issued an initial delinquent notice on September 19, 2024. This notice advises taxpayers of their tax delinquency, and affords taxpayers with the opportunity to reconcile their account, without statutory penalty, for thirty (30) days. The complainant did not respond to this notice and was issued a follow-up notice on November 7, 2024.

As the complainant did not respond to either delinquent notice, on January 3, 2025, my office sent the complainant and her spouse a Notice of Intent to Garnish Wages,by Certified Mail. Neither the complainant nor her spouse responded to the notice and the wage garnishment was issued to their employers on February 13,2025. On March 6, 2025, the complainants spouse contacted my office and was advised to upload documentation. On the same day, the complainants spouse uploaded copies of their W-2s evidencing employer withholding and credits associated with Philadelphia City Wage Tax.

            On March 13, 2025, the complainants account was cleared, and the garnishments were released. However, the complainants employer garnished additional funds to Keystone. A refund of these funds was prepared on March 26, 2025. In her complaint, the complainant advised that not all funds were refunded. There is unfortunately a delay associated with Keystones receipt of garnished funds that is outside of Keystones control. My office has received an additional $186.91 and the same will be refunded to the complainant. Should my office receive any additional garnished funds, any such funds will be returned the complainant directly.

I note that this issue could have been avoided by the proper filing of a tax return and associated remittance of payment. Nevertheless, my office considers this matter resolved.

My office appreciates the opportunity to resolve the concerns of taxpayers. Thank you for your attention to this matter.

Very truly yours,

                                                                        KEYSTONE COLLECTIONS GROUP

                                                                        By:
                                                                                    *********** E. *******
                                                                                    General Counsel
Customer Answer
Date: 04/23/2025
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.

This charge in county tax was not paid due to a mistake not on my part but an error made on my W2 that the ****************** made. I had no idea that the box for county taxes was marked as blank on the first copy of my W2 when in actuality the tax has been paid. That is why we could not understand why we were receiving letters regarding payment from you. We did try to call and talk with someone but the wait times are atrocious. Sometimes having to wait up to an hour even though your told your wait time would be no longer than 30 minutes. Who has time for that? Regardless of whether we had been notified or not you still owe us the amount you already took out. Let the emails and attached paystubs show that you still owe not only ****** (which we still have not received) but another 192.50.

Regards,

****** *****
Business Response
Date: 05/01/2025

Dear Ms. ******************** you for contacting Keystone Collections Group (Keystone) regarding this complaint ID number. In her response, the complainant advised that she has not received refunds of funds garnished in excess of her tax balance. Please know that I have thoroughly reviewed the complainants account. To avoid duplication, please see my previous response.

As detailed in my previous response, there is unfortunately a delay associated with Keystones receipt of garnished funds that is outside of Keystones control. At the time of my previous response, Keystone had received the additional $186.91 and prepared the refund. I further stated should my office receive any additional garnished funds, any such funds will be returned the complainant directly.

After submitting my previous response, my office received an additional $192.50 as detailed in the complainants response. My office has prepared a refund of the same on April 29, 2025. The complainant should afford time for the refunds to reach her through the mail.

As detailed previously, the wage garnishment was released on March 13, 2025.Accordingly, the complainants employer should cease garnishing her pay. Any additional funds received by my office will be refunded to the complainant directly.

My office appreciates the opportunity to resolve the concerns of taxpayers. Thank you for your attention to this matter.

Very truly yours,

                                                                        KEYSTONE COLLECTIONS GROUP

                                                                        By:
                                                                                    *********** E. *******
                                                                                    General Counsel
Initial Complaint
Date:04/16/2025
Type:Service or Repair Issues
Status:
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.
I logged into Keystone Collections Group on the morning of 4/15/25 to file my local taxes. The website would not load. I continued to receive error messages all day and night long when trying to file my local taxes. I also tried on several different computers and browsers. Their website was not functioning, and there were several ****** reviews posted stating the same. I was not able to log in and file successfully until the morning of 4/16/25, and was charged a penalty of $16.35 for doing so. Why am I being penalized if THEIR website was down? I would like a refund because I feel it is unacceptable. Keystone is a tax collection agency, and there is no excuse for their website not being able to handle a high number of people trying to access their services on TAX DAY of all days!
Business Response
Date: 04/16/2025
Dear Ms. ******************** you for providing my office with the above-referenced consumer complaint. Please know that Keystone experienced intermittent connectivity issues that impacted certain web applications. The disruption was immediately investigated and Keystone staff worked diligently to restore online availability. Residents who were unable to file due to the disruption will not incur additional penalties.

The penalty referenced by the complainant is interest that resulted from his employer not withholding at the correct tax rate. The complainant resides in *************************** which levies a local earned income tax of 2.0%. The complainants employer withheld tax at the rate of 1.0%. Accordingly, the complainants employer only remitted half of the tax liability in the first quarter of 2024. As a result, there was a tax deficiency in the first quarter of 2024 that resulted in the accrual of interest. The same amount of interest would have been due if the complainant filed his taxes on April 1, 2024.

Thank you for the opportunity to address the complainants concerns.

            Very truly yours,

            *********** E. *******
            General Counsel
Initial Complaint
Date:04/15/2025
Type:Service or Repair Issues
Status:
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.
The issue I have experienced with the company is in reference to local income tax filing. I tried for over a week to file my taxes but was unable to and there was no way to contact them either. I will most likely get a penalty fee for late local income tax because they made it impossible to report issues or anything else. This issue even made it to the news because I was not the only one experiencing the problem. I can honestly say I was on their website trying to get to the login screen for hours, I am still there and it is now 10:37 PM and still nothing has changed. The only thing they are telling people is to file a paper form. I am unable to do this as I do not know how, have no way to print it out, and no vehicle.
Business Response
Date: 04/16/2025
Dear Ms. ******************** you for providing my office with the above-referenced consumer complaint. Please know that Keystone experienced intermittent connectivity issues that impacted certain web applications. The disruption was immediately investigated and Keystone staff worked diligently to restore online availability. Residents who were unable to file due to the disruption will not incur additional penalties.

Thank you for your attention to this matter.

            Very truly yours,

            *********** E. *******
            General Counsel
Initial Complaint
Date:04/15/2025
Type:Billing Issues
Status:
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 collect local income tax for my area. The tax filing deadline is April 15th. I received an email from Keystone inviting me to file my tax return using their efficient and easy eFile system. For the last three days (April 13th, 14th, and 15th) their eFile system has been unavailable. Repeated calls to Keystone with go unanswered or are disconnected. It seems this company is not prepared to collect tax returns and leaves me unable to file my taxes or get answers from the company about what to do. As a result, my tax filing will be late and Ill have to pay a penalty for late filing. I want a refund of the penalty when Im charged.
Business Response
Date: 04/16/2025
Dear Ms. ******************** you for providing my office with the above-referenced consumer complaint. Please know that Keystone experienced intermittent connectivity issues that impacted certain web applications. The disruption was immediately investigated and Keystone staff worked diligently to restore online availability. Residents who were unable to file due to the disruption will not incur additional penalties.

Thank you for the opportunity to address the complainants concerns.

            Very truly yours,

            *********** E. *******
            General Counsel
Initial Complaint
Date:04/14/2025
Type:Billing Issues
Status:
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.
I've tried multiple times over the course of the last couple days to file my 2024 local tax return on Keystone's website, but it never works! I can't even get past the login page. And calling their phone number is futile; no one picks up! A quick ****** search says plenty of people are having this issue. How am I supposed to file my taxes by the April 15 deadline?!
Business Response
Date: 04/16/2025
Dear Ms. ******************** you for providing my office with the above-referenced consumer complaint. Please know that Keystone experienced intermittent connectivity issues that impacted certain web applications. The disruption was immediately investigated and Keystone staff worked diligently to restore online availability. Residents who were unable to file due to the disruption will not incur additional penalties.

Thank you for the opportunity to address the complainants concerns.

            Very truly yours,

            *********** E. *******
            General Counsel
Initial Complaint
Date:04/04/2025
Type:Billing Issues
Status:
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 Collection collects personal income tax for the *************** municipality. However, they are charging based on state wages rather than local wages (box 16 rather than box 18 on w2s). These can be drastically different as certain items like Employee Benefits are not subject to local taxes (****************************************************************************************************************************) this is resulting in them overcharging by hundreds to thousands of dollars in some cases on taxes and charging penalties because business and individuals deduct at the local wage level as this is a local municipality personal income tax.
Business Response
Date: 04/09/2025
Dear Ms. ********************************************************************************* Thank you for contacting Keystone Collections Group (Keystone) regarding this complaint ID number.

In his complaint, the complainant advised that Keystone assesses local earned income tax based upon state wages (W-2 Box 16)rather than local wages (W-2 Box 18). The complainant erroneously accused Keystone of overcharging on local earned income taxes. Please know that I have thoroughly reviewed the complainants account and the accusations advanced in his complaint.

As a preliminary matter, Keystone serves as the Act 32 Tax Officer for numerous tax collection districts throughout the ****************************. In the complainants case, Keystone serves as the Tax Officer for the Allegheny North Tax Collection District and the local taxing bodies therein. In this capacity,Keystone is tasked with the administration, collection, and reconciliation of local *** for all communities within the Tax Collection District that assess an EIT.

            The complainant correctly states that local earned income tax is assessed upon state, rather than local wages. Act 166 of 2002 requires the definition of earned income at the local level pursuant to the Local Tax Enabling Act,codified at 53 P.S. ******** et seq.(LTEA), to be nearly identical with very few exceptions, to the definition of compensation at the state level under the Pennsylvania personal income tax, levied pursuant to the Pennsylvania Tax Reform Code of 1971. That is, taxable earned income at the local level generally mirrors taxable compensation at the state level with the only exceptions being (1) active-duty military pay; (2) clergy housing allowance,and (3) offsets for business losses. 53 P.S. ********. Moreover, retirement and employee benefits are taxed identically for state and local income tax purposes.

            In support of his argument, the complainant supplies a link to a Frequently Asked Question response from a third-party tax preparation company explaining the difference between Box 16 and Box ******************************************************************************* general tax advice. Moreover, the response is associated with Federal Income Taxes and W-2s generally, and in no way applies Pennsylvania state or local law.

            There is no uniform guidance on the difference between state and local wages in ************. However, in most cases, state and local wages should match identically. If they do not, the difference typically occurs due to a taxpayer working at multiple workplace locations. Most employers report Box 18 local wages by workplace location because the local withholding rules require employers to remit local earned income tax first to the Tax Officer for the workplace location, who then remits the funds to the Tax Officer for the employees resident location, if the resident location is serviced by a different Tax Officer. 53 P.S. 6924.512(a)(4). The **** requires the employer to list the political subdivision code of the workplace location associated with local tax withholdings. 53 P.S. 6924.512(a)(7)(ii).

            It would therefore be improper for a taxpayer who works in multiple offices to only report income earned from one office as taxable for local earned income tax purposes, but to completely exclude income earned from the other office.

            Nevertheless, if a taxpayers employer does not withhold local earned income taxes correctly, it is the taxpayers responsibility to file a tax return and remit payment. 53 P.S. ********.

Keystone has fully complied with the law in administering local earned income taxes. The complainants assertion that Keystone is overchargingbecause it assesses tax upon state wages rather than local wages is without merit. As a matter of law, local earned income tax is assessed upon state wages.

Finally, I can identify no outstanding disputes,either for current or delinquent tax, between the complainant and 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:
                                                                                    *********** E. *******
                                                                                    General Counsel
Customer Answer
Date: 04/09/2025
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.

As they state " in most cases, state and local wages should match identically. " but in some cases they do not (as they themselves admit) ---- therefore their use of state wages instead of local wages to determine local income tax is incorrect and improper.
All workplaces and W2s have been properly provided.

Regards,

******* ******
Business Response
Date: 04/10/2025
Dear Ms. ********************************************************************************* Thank you for contacting Keystone Collections Group (Keystone) regarding this complaint ID number.

In rejecting my offices response to his complaint,the complainant reiterated his allegation that it is improper to assess local earned income tax upon state wages. It is important to reiterate that the complainant is relying on a Community Discussion section to a third party service that is not focused on local taxation; neither ************, nor Pennsylvania local taxes, are referenced anywhere within the link referenced by the complainant.

As detailed in my previous response, local earned income tax is properly assessed upon state wages. This is required by the Local Tax Enabling Act when it defines earned income as the compensation as required to be reported to or as determined by the ********************* under the Tax Reform Code of 1971. 53 P.S. 6924.501. In other words, income that is taxable at the local level is to match compensation that is taxable at the state level, with three notable exceptions detailed in my prior response. Therefore, the use of state wage is appropriate.

The complainants statement regarding employee benefits is not accurate as employee benefits that are taxable as compensation at the state level are taxable as income at the local level. Similarly, if a benefit is excluded from the definition of compensation by the *********************, it would not be taxable as income at the local level.

If a taxpayers local wages differ from state wages on their W-2, either the taxpayer worked at multiple work locations or the employer made an error. In the event that a taxpayer works in multiple work locations, they must remit local earned income taxes on all taxable income,which by law equals taxable state level compensation. If a taxpayer is a part-year resident of ************, they may allocate their taxable income according to the portion of the year they resided within ************.

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:
                                                                                    *********** E. *******
                                                                                    General Counsel
Customer Answer
Date: 04/10/2025
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.
As mentioned below there are "notable exceptions". Since there are exceptions, it is not appropriate for an online system to base off of stage wages and not take exceptions into account.

Regards,

******* ******
Initial Complaint
Date:04/03/2025
Type:Billing Issues
Status:
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.
I received a letter informing me that I owe unpaid local taxes from 2019. I have been retired for 6 years. I sent a copy of my filed tax return and today received a letter asking for my W2. I uploaded a copy of my 2019 tax return which includes W2 information and verifies my salary. I did not work in ********************* PA I worked in ************ and paid city wage taxes. I no longer have access to a copy of my W2 but it is clear from my tax form that I did not work in ***************. They have me owing over $800. It feels like a scam. When you call you are on hold for hours. The letters do not respond to your concerns. I have never worked in ***************. Im on a fixed income and cannot afford to have my social security garnished for a tax bill that I do not owe. My complaint is that you cant get anyone one the phone and they dont have correct information.
Business Response
Date: 04/08/2025
Dear Ms. ********************************************************************************* Thank you for contacting Keystone Collections Group (Keystone) regarding this complaint ID number. In her complaint, the complainant alleged that Keystone sent her a delinquent local earned income tax notice for *****************************. The complainant disputed the imposition of tax as she worked in the City of ************ and paid City Wage Taxes. Please know that I have thoroughly reviewed this account.

As a preliminary matter, Keystone serves as Act 32 Tax Officer for the Delaware County Tax Collection District (***). In this capacity, Keystone is tasked with administering and collecting local earned income tax (***) from all political subdivisions located within the *** that assess an EIT.

The Local Tax Enabling Act (LTEA) requires all taxpayers making earned income and/or net profits to file a local EIT return and to remit any outstanding tax liability with their resident tax officer. 53 P.S. 6924.502(c). Importantly, the tax is assessed based upon residency. That is, individuals need not work within ***************************** or the ***. Rather,all residents of the taxing jurisdiction are required to file a tax return,regardless of where they work.

Per my review of the complainants account, she has never filed a tax return with Keystone in accordance with her statutory obligation. Pursuant to the information exchange mandate between Keystone and the ********************************** (DOR), Keystone is supplied with limited earnings information used to identify potentially underpaid accounts. This earnings information confirmed the balance listed on the complainant and her spouses account.

            Per my review, the complainant was issued an initial delinquent notice on May 27, 2022.This notice affords taxpayers with the opportunity to remit payment, free of statutory penalty, within thirty (30) days. This notice was not returned to my office as undeliverable or unable to forward. As the complainant did not respond, she was issued five (5) follow-up notices, dated December 29, 2022,May 4, 2023, May 23, 2024, October 12, 2024 and March 13, 2025. In response to the March 13, 2025 notice, the complainant supplied a copy of her jointly filed PA 40 personal income tax return. The income listed on the complainants PA 40 matches the income upon which Keystone has assessed tax.

            In response, my office issued the complainant a document request seeking earnings information, such as W-2s, for the complainant and her spouse. This documentation is necessary as it would evidence any local earned income tax that may have been withheld from their respective pay. Additionally, such information is needed to verify any available tax credits associated with payment of Philadelphia City Wage Tax.

            Taxpayers who work in the City of ************ must file a local earned income tax return with their resident tax officer like all other Pennsylvania resident ************ most cases, due to the high rate of taxation imposed by the City of ************, and the availability of a super credit associated with the City Wage Tax, the taxpayers local earned income tax liability is negated by the tax paid to ************. However, without properly filing a tax return, such credit cannot be claimed, and tax officers such as Keystone cannot be aware of the availability of such a credit.

            ********* is therefore unable to remove the complainants outstanding tax liability at this time. As a resident of ***************************** with taxable income, it was her responsibility to file a local earned income tax return. ********* has not received any local earned income tax withholdings on the complainant or her spouses behalf. Accordingly, if the complainant believes that her tax liability was satisfied, my office kindly requests that she provide the requested documentation.

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:
                                                                                    *********** E. *******
                                                                                    General Counsel
Customer Answer
Date: 04/09/2025
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:04/01/2025
Type:Billing Issues
Status:
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.
I recently received a notice from my employer about my wages being garnished. I have dealt with this issue in the past and resolved such matters with Keystone collections group. They however, did not send me a notice directly this time. I received it from my employer a week before the garnishments started which allotted no time for me to resolve this issue. I uploaded the documents needed to prove I already paid what they stated I owed. They sent me another notice of garnishments that was dated for the 18th of March "by mistake" instead of a resolution letter. They refused to fax, email, or make any attempt to expedite the process to my employer. They also refused to let me talk to a supervisor. At one point, I was hung up on when I did nothing wrong but ask for a supervisor. I was told on the 20th of March and multiple days following the resolution letter was sent. That was lie. It was sent on the 25th. I was told by one gentleman that the letters were hand written when I asked why it couldn't be faxed or emailed. The letter I received was most certainly not hand written, although I would have been impressed if it was. My wages have been garnished once for over 200 dollars 2 weeks ago and they are saying they still haven't received the payment. They should have already received it and mailed me a return check. Because of their untimely manner of sending the resolution letter, I will now have over 100 more dollars taken out of my check for something I didn't owe in the first place. I have talked to at least a dozen people at this company throughout this ordeal and maybe one or two have actually been helpful. No one there actually knows what they are doing. They continously saying I lived places in years I didn't and I can only imagine how many people allow them to double dip. Most people just chalk it up as a loss and that they owe something. I just want my money back that I wake up at 4am everyday for and work extremely hard for, in a timely manner.
Business Response
Date: 04/10/2025
Dear Ms. ******************** you for contacting Keystone Collections Group (Keystone) regarding this complaint ID number. In his complaint, the complainant advised that Keystone garnished his and wages to collect delinquent local earned income taxes (EIT.) The complainant advised that he did not receive notice prior to wage garnishment and that his taxes were withheld. The complainant further detailed issues communicating with Keystone representatives.. Please know that I have thoroughly reviewed the complainants account.

As a preliminary matter, Keystone serves as the Act 32 Tax Officer for the Lebanon County Tax Collection District and the local taxing bodies therein. In this capacity, Keystone is tasked with the administration, collection, and reconciliation of local EIT for all communities within the Tax Collection District that assess an EIT.

The Local Tax Enabling Act (****) requires all Pennsylvania resident taxpayers making earned income and/or net profits to file a local EIT return with their resident Tax Officer. 53 P.S. 6924.502(c). It is important to note that local EIT, like all other income-based taxes, are self-reporting. Per my review, the complainant did not file a tax return with Keystone for the subject tax year.

Pursuant to the information exchange mandate of the ***** Keystone is supplied with limited earnings information from the ********************************** (***) used to identify unpaid or underpaid accounts. See 53 P.S. ***********. The income figures listed on the delinquent notices at issue were taken directly from the earnings information supplied by the **** which represents figures the complainant listed on his PA 40 personal income tax return for the 2020 tax year.

Understanding that the information supplied by the *** may be inaccurate, Keystone provides taxpayers with ample notice prior to the initiation of adverse legal or collection action. Through the ***** 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). Moreover, the **** authorizes the collection of delinquent EIT by wage garnishment. 53 P.S. 6924.702-703.

Per my review, the complainant was issued an initial delinquent notice on August 19, 2022. This notice advises taxpayers of their tax delinquency, and affords taxpayers with the opportunity to reconcile their account, without statutory penalty, for thirty (30) days.

As the complainant did not respond to the delinquent notice, on October 7, 2022, my office sent the complainant and his spouse a Notice of Intent to Garnish Wages,by Certified Mail. The complainant did not respond and the wage garnishment was issued to his employer on November 18, 2022. On January 6, 2023, the complainant contacted my office and advised of his part-year residency. The complainant was advised to upload his W-2 and proof of residency. In the meantime, the complainants employer never complied with the garnishment, despite receiving a demand notice on February 16, ******* March, 2023, the complainant uploaded a W-2 that did not specify which tax year it applied to and did not account for all income reported to Keystone.Further, the complainant did not supply proof of residency.

            The complainants employer was updated on March 13, 2025. The complainant received notice advising of this update. In response, he contacted Keystone and supplied documentation evidencing that no tax was due. My office released the garnishment on March *******. However, the complainants employer garnished funds to Keystone. A refund of these funds was prepared on April 8, 2025. Should the complainants employer continue to garnish wages, any such funds will be returned the complainant directly.

I note that this issue could have been avoided by the proper filing of a tax return and associated remittance of payment. Nevertheless, my office considers this matter resolved.

            Finally, I caused the review of the complainants communications with Keystone representatives. For quality assurance and training purposes, all calls are recorded. Based upon a review of the conversations between the complainant and Keystone representatives, it is evident that the complainant was frustrated during such conversations.Specifically, the complainant was unsatisfied that he could not instantly speak with a supervisor. Keystones typical policy is for a supervisor to contact a taxpayer within ***** hours of a supervisor request. Further, I have confirmed that no Keystone representative advised the complainant that the release notice would be hand written. The complainant advised he was misled as to the date of the release notice. Please be advised that the notice was dated March ******* but mailed on March 20, 2025. This difference accounts for any **** delays. Nevertheless, the complainant was appropriately advised. Finally, the complainant was dissatisfied with the delay in Keystones receipt of the garnished funds from his employer. Please be advised these funds were not remitted to Keystone by *** transfer, rather, they were issued via check through regular mail. There is unfortunately a delay associated with Keystones receipt of garnished funds through the mail.

Nevertheless,the complainants refund has been approved and he should receive the funds shortly.

My office appreciates the opportunity to resolve the concerns of taxpayers. Thank you for your attention to this matter.

Very truly yours,

                                                                        KEYSTONE COLLECTIONS GROUP

                                                                        By:
                                                                                    *********** E. *******
                                                                                    General Counsel
Customer Answer
Date: 04/13/2025
[A default letter is provided here which indicates your acceptance of the business's response. If you wish, you may update it before sending it.]

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. I would like to add that a lot of the information they provided regarding previous interactions and phone calls is completely false. If they are recorded, I would recommend listening to them yourself. Was I frustrated? Absolutely. Was I ever informed about the 24 to 48 hpur supervisor call back? No. Everything I reported was verbatim what I was told.
I am currently dealing with employer with employer directly for the refund of what I am owed, so there will be no need to send a check on your end.
I appreciate the effort to make things right but it is not needed. I would much rather deal with the company I am employed by rather than a third party or collections agency. Thank you again for your time.

Regards,

**** ******
Customer Answer
Date: 04/14/2025
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 would like to add that a lot of the information they provided regarding previous interactions and phone calls is completely false. If they are recorded, I would recommend listening to them yourself. Was I frustrated? Absolutely. Was I ever informed about the 24 to 48 hpur supervisor call back? No. Everything I reported was verbatim what I was told.

I am currently dealing with employer with employer directly for the refund of what I am owed, so there will be no need to send a check on your end.

I appreciate the effort to make things right but it is not needed. I would much rather deal with the company I am employed by rather than a third party or collections agency. Thank you again for your time.

Regards,

**** ******
Initial Complaint
Date:03/28/2025
Type:Billing Issues
Status:
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.
Keystone Collections sends me correspondence EVERY year for delinquent taxes when I havent lived in said school district in years. When I try to call to resolve the issue, Im met with ridiculous hold times. The last time I had to call, the *** was rude and hung up on me. I have sent paperwork advising I did not live in this school district and have since received another notice from EIGHT years ago. Of which my wages were already garnished. Keystone collections cant keep track of their own documents.
Business Response
Date: 04/08/2025
Dear Ms. ********************************************************************************* Thank you for contacting Keystone Collections Group (Keystone) regarding this complaint ID number. In her complaint, the complainant alleged that Keystone sends her delinquent tax notices every year. Most recently, the complainant received a delinquent local earned income tax notice for the 2017 tax year. The complainant advised that her wages were previously garnished for these taxes. Please know that I have thoroughly reviewed this account.

As a preliminary matter, Keystone serves as Act 32 Tax Officer for the Washington County Tax Collection District (***). In this capacity, Keystone is tasked with administering and collecting local earned income tax (EIT) from all political subdivisions located within the *** that assess an EIT.

The Local Tax Enabling Act (****) requires all taxpayers making earned income and/or net profits to file a local EIT return and to remit any outstanding tax liability with their resident tax officer. 53 P.S. 6924.502(c). Per my review of the complainants account, she has never filed a tax return with Keystone. I note that both of the complainants residency locations are within the *********************.

Pursuant to the information exchange mandate between Keystone and the ********************************** (DOR), Keystone is supplied with limited earnings information used to identify potentially underpaid accounts. This earnings information confirmed the balance listed on the complainants account.

            Per my review, the complainant was issued an initial delinquent notice on February *******. This notice was returned to my office as unable to forward (UTF) and the notice was sent to a new address on April 9, 2021. This notice was also returned as UTF. My office subsequently acquired a new address and reissued the notice on March 3, 2023. The notice was not returned to my office, and the complainant did not respond. My office issued follow-up notices on May 2, 2024 and October 24, 2024. The complainant did not respond to these notices.

            The **** authorizes the collection of delinquent earned income taxes by wage garnishment. 53 P.S. 6924.702-703. Accordingly, the complainant was issued a Notice of Intent to Garnish Wages by Certified Mail on February 13, 2025 and by First Class Mail on March 20, 2025. This complaint followed.

            Per my review of the complainants account, she contacted my office on March 28, 2025 and requested an accounting of the garnishment payments my office received. At the time, the complainant was advised that she was previously garnished for delinquent per capita taxes owed to the local taxing authorities. Per capita taxes are a separate and distinct form of taxation. The complainant previously disputed her per capita tax account but neglected to provide exemption information.

            Moreover,I note that the complainant has not supplied any documentation to my office regarding her local earned income taxes. Nevertheless, in response to this complaint my office independently verified the complainants address. Based upon local earned income tax withholdings my office received on her behalf, my office was able to close the delinquent tax year based upon part-year residency.

            I note that this matter could have been avoided had the complainant filed a tax return with Keystone in accordance with her statutory obligation. Nevertheless,Keystone has at all times acted in compliance with state law.

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:
                                                                                    *********** E. *******
                                                                                    General Counsel
Customer Answer
Date: 04/08/2025
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 sent multiple forms to Keystone advising that I did not live in their jurisdiction at the time of the notices.

Regards,

****** *******
Business Response
Date: 04/24/2025
Dear Ms. ********************************************************************************* Thank you for contacting Keystone Collections Group (Keystone) regarding this complaint ID number. In rejecting my offices response the complainant advised that she sent multiple forms to Keystone advising that [she] did not live in [the taxing jurisdiction.] Please see my offices previous response regarding this matter.

            As detailed previously, my office has never received any documentation regarding the complainants local earned income taxes. Nevertheless, her account was closed based upon independent review. I note that the complainant previously disputed per capita taxes, a separate and distinct tax from local earned income tax. As detailed in my previous response, the complainant has never supplied exemption information to Keystone for per capita taxes.

            Nevertheless,the complainants account shows no outstanding taxes. My office therefore 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:
                                                                                    *********** E. *******
                                                                                    General Counsel
Customer Answer
Date: 04/24/2025

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:03/28/2025
Type:Billing Issues
Status:
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.
The company garnished my wages for a tax that I do not owe..They are collecting the one percent income tax for the California school district and I have never lived in the ****************************** district..I live in the ******************************..i want my money refunded and for them to stop sending me bills for the California School distict
Business Response
Date: 04/07/2025
Dear Ms. ********************************************************************************* Thank you for contacting Keystone Collections Group (Keystone) regarding this complaint ID number. In her complaint, the complainant advised that Keystone issued her a delinquent per capita tax bill, which she disputes. The complainant advised that she did not reside in the taxing jurisdiction for the subject tax year. Please know that I have thoroughly reviewed the complainants account.

********************** serves as the delinquent per capita tax collector for the ********************** District. Per capita taxes are head taxes assessed on all adult residents of the School District. Per my review of the complainants account, she was issued a delinquent per capita tax notice on August 21, 2024. The complainant did not respond.

The Local Tax Enabling Act authorizes the collection of delinquent per capita taxes by wage garnishment. 53 P.S. 6924.702-703. As the complainant did not respond to the delinquent notice, my office issued her a Notice of Intent to Garnish Wages via Certified Mail on November 5, 2024 and via First Class Mail on January 24, 2025. Both notices were sent to the same address and my office received a signed Certified Mail receipt card indicating that the notice was delivered. The complainant did not contact my office and the wage garnishment was sent to her employer on March 4, 2025. This complaint followed.

The complainant contacted my office after the wage garnishment was issued to her employer. She was advised to submit an exemption application. This form is available online, but my office mailed the complainant an exemption form on March 31, 2025.

            Please know that the complainants account was turned over as delinquent by the School District. Keystone began serving as the delinquent per capita tax collector for the School District in May of 2024. At that time, all outstanding delinquent accounts were turned over to Keystone. Moreover, as Keystone serves as the delinquent collector, my office handles only delinquent notification and collection. If a taxpayer is turned over as delinquent in error, the taxpayer is afforded the opportunity to file an exemption. This process is clearly detailed on all bills.

            The complainant has been supplied with an exemption form. In the event the complainant qualifies for an exemption from the tax, my office will remove the outstanding liability. Any garnished funds remitted to Keystone by the complainants employer will be refunded to her directly.

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:
                                                                                    *********** E. *******
                                                                                    General Counsel
Customer Answer
Date: 04/07/2025
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,

********* ******

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