Business Profile
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:05/12/2024
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.
Not sure why this company keeos contacting me. I did not reside or Live in Lebanon County in 2021. I tried to contacted them through their business hours at 717-272-3770 but its impossible to reach anyone. This is the second time this company has harassed me in the last couple of years. They are aware I don't stay in this poor county. In the attachments is my W-2 from 2021 along with the letter they sent. Can they please stop harrassing me with false debt claims.Business Response
Date: 05/15/2024
Dear Ms. ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In his complaint, the complainant advised that Keystone
sent a notice requesting payment for delinquent local earned income taxes
(“EIT”). The complainant advised that the delinquent tax notice corresponded to
a taxing jurisdiction in which he did not reside. Please know that I have
thoroughly reviewed the complainant’s 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 Lebanon County that assess an EIT.
The Local Tax Enabling
Act (“LTEA”) 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. That is, it is the taxpayer’s legal
obligation to file a tax return, report all income, and remit any outstanding
tax, if necessary. Income taxes are not “billed” like real estate or certain
nuisance taxes.
Per my review of the complainant’s account, he did
not file a tax return with Keystone for the 2021 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). The income figures listed on the
complainant’s delinquent notice were taken directly from the earnings
information supplied by the DOR, which represents figures the complainant
listed on his PA 40 personal income tax return. Moreover, the information
supplied by the DOR reflected that the complainant filed his 2021 PA 40 as a
resident of Lebanon City / Lebanon School District.
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. 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 July 27, 2023.
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. The complainant was issued
follow-up notices on October 31, 2023, November 28, 2023, and May 7, 2024. This
complaint followed.
If the complainant disputes the tax, he may supply
documentation evidencing further evidencing his residency for the 2021 tax
year. Alternatively, he may supply evidence that the tax was paid elsewhere or
satisfied by tax credits. My office will review copies of any W-2s or tax
returns filed to other local taxing authorities.
Finally, I note that Keystone’s actions have at all
times been proper and in accordance with its statutory powers and obligations. See 53 P.S. §
6924.509. These actions are not
“harassing”; rather, as detailed herein, the complainant’s account represents
an identified discrepancy, which my office is happy to resolve upon the
provision of 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:
Christopher
*. V******
General
CounselInitial Complaint
Date:05/10/2024
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.
I received a letter from Keystone Collections Group of PA for Chester City about local taxes owed from 2021 stating that my federal reported income doesn't match their information. There is an approximate amount 3000 dollars under-reported - I moved early in 2022 so i had to really research but thankfully I found the W2 from an employer for the missing amount. Local taxes were withheld for Philadelphia less my exemptions. My concern is that it takes an extremely long time for a response from the online document upload tool so I have tried to call them, When I call, I am on hold for at least a half an hour which is my whole lunch break so i have to try again the next day. It seems like they would have better hours of operation for a debt collector. Out of at least 20 call attempts I spoke to one woman who instructed me to send as many supporting documents as possible up to May 16 2024, Three days after that call I got another letter stating my documents aren't good along with the same bill. There is no way my documents were reviewed and maybe that was a letter from previous docs there is no way to know because the information in these letters are not individualized. I am concerned about the way this collector does business. The business hours and rate of answer for phone calls are not useful to the public. It's as if they want to threaten garnishment but provide little to no resolution so that people will pay taxes they may not even owe out of frustration. The letters they send with these tax amounts do not offer a breakdown of why the amount is owed at all - no calculation or anything I would like detailed correspondence about what is owed if owed and how have they calculated it.. My documents are enclosedBusiness Response
Date: 05/21/2024
Dear Ms. ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In her complaint, the complainant advised that Keystone
sent a notice requesting payment for delinquent local earned income taxes
(“EIT”). The complainant disputed the balance listed on her account, stating
that she submitted documentation. Please know that I have thoroughly reviewed
the complainant’s 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 Tax Collection District that assess an
EIT. Keystone is not a debt collector;
rather, Keystone serves as the exclusive tax administrator for its clients.
The Local Tax Enabling
Act (“LTEA”) 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. That is, it is the taxpayer’s legal
obligation to file a tax return, report all income, and remit any outstanding
tax, if necessary. Income taxes are not “billed” like real estate or certain
nuisance taxes.
Per my review of the complainant’s account, she has
never filed tax returns with Keystone.
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). The income figures listed on the complainant’s delinquent notice were
taken directly from the earnings information supplied by the DOR, which
represents figures the complainant listed on her PA 40 personal income tax
returns. Moreover, the information supplied by the DOR reflected that the
complainant filed her 2020 and 2021 PA 40s as a resident of Chester City.
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. 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 September 14, 16, 2022 for the 2020 tax year. In response, the complainant supplied income
documentation evidencing Philadelphia City Wage Tax withholding, which entitled
her to tax credits that satisfied her liability. Without the filing of a tax
return, taxpayers cannot claim tax credits. Nevertheless, the complainant’s
account was closed for the 2020 tax year in January of 2023.
The
complainant was issued an initial delinquent notice of September 7, 2023 for
the 2021 tax year. In response, the complainant supplied documentation that did
not account for all of her state reported income. Accordingly, on January 16,
2024, my office sent the complainant a document request seeking her provision
of all W-2s and/or 1099s for the 2021 tax year. The complainant did not respond
to this notice.
The
LTEA authorized the collection of delinquent local earned income taxes by wage
garnishment. 53 P.S. §§ 6924.702-703. On February 22, 2024, my office sent the
complainant a Notice of Intent
to Garnish Wages by Certified Mail. In response, the complainant
supplied documentation accounting for all of her income. However, the
complainant’s tax liability was not satisfied by employer withholdings.
Accordingly, the complainant was issued a Balance Due Notice on April 11, 2024.
In response, the complainant submitted the same documentation, along with
additional Federal Income Tax information. My office issued her an additional
Balance Due Notice on May 9, 2024. This complaint followed.
Per
my review, the complainant was underpaid on her local earned income taxes. The
complainant worked for three (3) employers during the 2021 tax year. One
employer completely withheld EIT from her pay; one employer did not withhold
any EIT; and the third employer withheld EIT from her pay at the incorrect
rate. That is, Chester City assessed EIT at the rate of 3.75% in 2021. The
third employer withheld EIT from the complainant’s pay at the rate of 2.75%.
Accordingly,
my office correctly determined the complainant’s delinquent balance. The
complainant should remit payment as soon as possible. Moreover, the complainant
should begin filing local earned income tax returns with Keystone in accordance
with her statutory obligation.
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:05/05/2024
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.
We just received a registered letter from Keystone Collections Group regarding unpaid real estate taxes from 2005. This is the only communication we have received from them in 19 years. They have added on more than double the fees on the so-called unpaid tax. We do not owe this tax. In calling the city of McKeesport and talking to Barb, there have been several people calling and complaining about the same issues of very old taxes. I feel like this is a scam. I am 80 years old, and my husband is 87. We live on a fixed income and have always paid our taxes as we qualify for the tax rebates. Now they are threatening to put a lien on my house from a 19-year-old tax that we knew nothing about. How do they expect me to prove after 19 years that this bill was paid? If it was supposedly unpaid, they we should've been notified in a timely manner, so we would have record. Please help. How do they expect me to produce proof that I paid these taxes 19 years ago?Business Response
Date: 05/16/2024
Dear Ms. ******:
Thank
you for your letter regarding the above-referenced complaint ID number.
Keystone Collections Group appreciates the opportunity provided by the BBB to
resolve the concerns of taxpayers.
Please know that
I have thoroughly reviewed this taxpayer’s delinquent real estate account. According to our records, this taxpayer
turned over as delinquent for the 2004 and 2005 tax years. In 2005, Ms. ****** did contact Keystone and
made 2 payments to satisfy the 2004 delinquent real estate tax balance. Unfortunately, the 2005 tax year was never
satisfied and a lien was filed on the property in 2008 in accordance with the Municipal
Claim and Tax Lien Law.
Our records also
indicate that Ms. ****** contacted our office in 2010 regarding the lien that
was filed in 2008 for the 2005 tax year.
Again, the tax balance was never paid with our office. Tax liens are valid in Pennsylvania for 20
years and can be revived for another 20 years.
Finally,
Ms. ****** claims that Keystone has added on “more than double the fees”. To the contrary, Keystone has not added any
“fees” on this account. By law, a 10%
penalty is added to real estate taxes if not paid within 4 months of the tax
bill. Additionally, interest begins to
accrue on taxes in accordance with Pennsylvania law once a lien is filed. Therefore, the account has incurred interest
by law which is not payable to Keystone.
As the interest is mandated by law and payable to the taxing authority,
Keystone is also not authorized to waive the same.
Thank you for
your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:Christopher *. V******
General Counsel
Initial Complaint
Date:05/03/2024
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.
My husband ****** ****** ******* and I ***** ***** have been communicating back and forth with keystone for the past 6 months.
My employer was using the incorrect PSD code resulting in my EIT going elsewhere. I have uploaded documents and have also called with waiting on hold for over 2 hrs for an agent on 4/8/24 which told me which documents are needed.
I never got a notice of garnishment of wages. All of a sudden today 5/3 I am having my wages garnished for something I have been providing documentation for and trying to resolve.
That money is paid it is just with another township. Now to get those wages refunded is gong to take a while and my family relies on that money.Business Response
Date: 05/13/2024
Dear M** ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In her complaint, the complainant advised that she and her
spouse have provided tax documentation to Keystone seeking to resolve their
delinquent local earned income tax accounts. Further, the complainant contended
that they do not owe the balance listed on their respective accounts, as they
were fully withheld at the local level. Please
know that I have thoroughly reviewed both her and her spouse’s accounts.
As a preliminary matter, Keystone serves as Act 32 Tax
Officer for the Lebanon Tax Collection District (“TCD”). In this capacity, Keystone is tasked with
administering and collecting local earned income tax (“EIT”) from all political
subdivisions located within the TCD, such as Cornwall-Lebanon School District
and North Lebanon Township, 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). Per my review of the complainant’s account, neither she nor
her spouse have filed a local earned income tax return with Keystone prior to
2022 in accordance with their statutory requirement. Additionally, Pennsylvania
law permits the collection of delinquent earned income taxes by wage
garnishment. 53 P.S. §§ 6924.702-703.
Pursuant to the information exchange mandate between
Keystone and the Pennsylvania Department of Revenue (“DOR”), Keystone is
supplied with limited earnings information used to identify potentially
underpaid accounts. A review of
earnings information supplied by the DOR indicates that the complainant and her
spouse reported taxable compensation to the state of Pennsylvania for which
they did not remit local earned income taxes or file tax returns with Keystone
for the 2021 tax year.
Per my review of the complainant’s account, the complainant
was initially notified about the delinquency on July 27, 2023, for the 2021 tax
year. The complainant responded by
providing her 2021 W-2 detailing local income taxes withheld for North Lebanon
Township and Cornwall-Lebanon School District.
However, this W-2 did not account for all of the complainant’s income,
and the complainant was notified that a balance remained, and further
documentation was needed. Additionally,
the complainant called Keystone and was advised of the same by a Customer
Service Representative. On May 2, 2024,
the complainant submitted an additional W-2 that satisfied the liability on the
account. Please be advised that at no
time did my office commence wage garnishment in accordance with the
complainant’s account. Accordingly, her
account has been satisfied and closed.
Per my review of the spouse’s account, he was initially
notified of the tax delinquency for tax year 2021 on the same date as the
complainant. As Keystone received no
response, he was issued a Notice of Intent to Garnish Wages, by
Certified Mail, on February 20, 2024. In
response, the spouse uploaded W-2 documentation on February 29, 2024, and May
2, 2024. As the complainant’s spouse supplied documentation, no wage
garnishment was issued to his employer. Upon review, he was fully withheld locally
on his income. Accordingly, his account
has also been satisfied and closed.
As both accounts are now satisfied
and closed, my office considers this matter resolved. In the future, please note that these issues
can be proactively avoided by filing a local tax return in accordance with
one’s statutory obligation.
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:04/08/2024
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.
I have been deal with this collection group for 1 year now, saying I still owe the balance. Have given them all of the information and more to get this collection resolved. Have uploaded all of my tax information multiple times to their website since receiving a notice from them. Also have called and spoke to multiple people throughout the year and they all say the same thing. I feel like this is a scam and I don’t owe any money.Business Response
Date: 04/09/2024
Dear Ms. ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In her complaint, the complainant advised that she and her
spouse have provided tax documentation to Keystone seeking to resolve their
delinquent local earned income tax account. Further, the complainant contended that
they do not owe the balance listed on their account.
As a preliminary matter, Keystone serves as Act 32 Tax
Officer for the Delaware Tax Collection District (“TCD”). In this capacity, Keystone is tasked with
administering and collecting local earned income tax (“EIT”) from all political
subdivisions located within the TCD, such as Tinicum Township, 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). Per my review of the complainant’s account, neither she nor
her spouse have ever filed a local earned income tax return with Keystone in
accordance with this statutory requirement.
Pursuant to the information exchange mandate between
Keystone and the Pennsylvania Department of Revenue (“DOR”), Keystone is
supplied with limited earnings information used to identify potentially
underpaid accounts. A review of
earnings information supplied by the DOR indicates that the complainant and her
spouse reported taxable compensation to the state of Pennsylvania for which they
did not remit local earned income taxes or file tax returns with Keystone for
the 2018-2021 tax years.
Per my review of the account, the taxpayers were
initially notified about the delinquencies on August 28, 2021, November 15,
2021, September 20, 2022, and September 14, 2023 for each tax year,
respectively.. The complainant and her
spouse did not respond to any of these notices.
Pennsylvania law permits the collection of delinquent earned
income taxes by wage garnishment. 53 P.S. §§ 6924.702-703. Accordingly, the
complainant and her spouse were issued a Notice of Intent to Garnish Wages,
by Certified Mail, on April 20, 2023. In response, the complainant contacted
Keystone to provide proof that the taxes were paid.
The complainant supplied my office with copies of W-2s. Upon review, the complainant was informed, by
a Keystone representative, that while she was withheld locally, her spouse was
not. As income reported on her spouse’s
W-2 was not withheld for local taxation, the balance on the account stands. The complainant and her spouse did not remit
payment and the wage garnishment was issued to the employer.
The
balance listed on the complainant’s account has been correctly calculated as
her spouse did not remit any local earned income taxes on his compensation.
Moreover, the taxpayers were provided with ample time to satisfy their account
prior to the initiation of a wage garnishment. Keystone’s actions have at all
times been proper.
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: 04/12/2024
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:03/22/2024
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 stealing money I do not owe. They work on insufficient information and are allowed to attach garnishments on that information. They have no direct way to communicate with them which should not be allowed.Business Response
Date: 04/09/2024
Dear Ms. ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In his complaint, the complainant contended that Keystone
is “stealing money” for tax he does not owe. The complainant neglected to
provide any additional account details or claims in support of any dispute he
might have with Keystone. Please know that I have thoroughly reviewed the
complainant’s account.
As a preliminary matter, this matter appears to
concern the complainant’s 2020 and 2021 local earned income tax liability for
which the complainant’s wages were garnished. As you will see below, Keystone
has at all times acted appropriately.
Keystone serves as the Act 32 Tax Officer for the Bucks
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 (“LTEA”) 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. That is, it is the taxpayer’s legal
obligation to file a tax return, report all income, and remit any outstanding
tax, if necessary. Income taxes are not “billed” like real estate or certain
nuisance taxes.
Per my review of the complainant’s account, neither
he nor his spouse filed a tax return with Keystone for the 2020 or 2021 tax
years. 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). The income
figures listed on the complainant’s delinquent notice were taken directly from
the earnings information supplied by the DOR, which represents figures the
complainant and his spouse listed on their jointly filed PA 40 personal income
tax returns.
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. 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 September 1, 2022 and October 12, 2023, for the
2020 and 2021 tax years, respectively. The complainant did not respond to
either notice. The complainant was issued follow-up notices on January 17, 2023
and May 2, 2023 for the 2020 tax year, neither of which he responded to.
The LTEA authorizes the collection of delinquent
EIT by wage garnishment. 53 P.S. §§ 6924.702-703. Accordingly, the complainant
was issued a Notice of Intent
to Garnish Wages on July 18, 2023 by Certified Mail and on
September 5, 2023 by First Class Mail. After the 2021 tax year became
delinquent, an additional Notice of Intent
to Garnish Wages was issued to the complainant on October 12, 2023.
The complainant did not respond to any notice.
The complainant’s employer was issued the wage
garnishment on November 30, 2023. However, the employer neglected to comply
with the garnishment notice. As a result, the complainant’s employer was issued
a demand notice dated January 11, 2024. The complainant’s employer began
garnishing his wages in February, 2024.
On March 14, 2024, the complainant contacted
Keystone for the first time to inquire about the garnishment. In response, the
complainant submitted a copy of his 2021 W-2 evidencing Philadelphia City Wage
Tax withholding, entitling him to tax credits sufficient to satisfy his 2021
tax liability. The complainant did not supply any documentation concerning the
2020 tax year. On March 19, 2024, the 2021 tax year was cleared and the
complainant was issued a document request seeking income documentation for the
2020 tax year. This complaint followed.
As detailed above, all Pennsylvania taxpayers are
required to file a local earned income tax return with their resident Tax
Officer. Without the filing of a tax return, the Tax Officer is unaware of the
availability of any tax credits, such as those available for the payment of
income tax to the City of Philadelphia or another state. The complainant’s
proper filing of tax returns with Keystone would have avoided this situation.
Keystone has at all times acted in accordance with
its statutory obligations. Keystone does not wish to collect tax that is not
due; however, based upon Keystone’s records, and the information supplied by
the DOR, the balance on the complainant’s account must stand without
contradictory evidence. The 2020 tax year was satisfied via the garnishment,
which was released on March 28, 2024. However, if the complainant supplies the
requested documentation and such documentation proves that no tax was due for
the 2020 tax year, all monies garnished will be refunded to the
complainant.
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:03/17/2024
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.
My wife and I, ********* ******** and ******** ******, were both sent delinquent tax invoices by Keystone Collections (attached) for the Harrisburg School District Occupation Tax. Despite being the same tax, the due dates are different. Alex received a second invoice with an additional $25.00 penalty (attached). Both our invoices were paid on March 17 (receipts attached).
Why is the same tax assessed on different days? Why wouldn't Keystone have a uniform due date and penalty dates for everyone paying the HSD Occupation Tax? This is unnecessarily confusing, especially for household bill payments.
I'm also unsure why this tax is collected before April 15. I put the invoices in my tax 2024 tax folder without noticing the due date (my fault) but if this tax was due after April 15, my household and many others would not be charged fees.
It is my opinion Keystone Collections intentionally concocts confusing ways to collect this tax to profit from the Act 192 Levy and other penalty-assessing means.
Action taken: I would like the $25 assessed to my wife, ********* ********, refunded.Business Response
Date: 03/28/2024
Dear Ms. ******:
Thank you for contacted Keystone Collections Group
(“Keystone”) regarding this complaint ID number. This complaint was filed by
******** ****** on behalf of his wife, ********* ******** (hereinafter Mr.
****** and Ms. ******** will be collectively referred to as “complainants.”)
In their complaint, the complainants advised that Keystone
issued them each a delinquent occupation tax notice for Harrisburg School
District. The complainants did not dispute their respective delinquent taxes;
rather, they requested the return of collection costs as their delinquent
notices reflected different due dates, which they categorized as “unnecessarily
confusing.” Please know that I have thoroughly reviewed the complainants’
accounts.
Keystone serves as the current and
delinquent occupation tax collector for Harrisburg School District. The tax is
assessed on all adult employed residents of the School District. The tax is
uniformly billed on July 1 each year. The tax is due at a discounted rate by
August 31, at the face rate by October 31, or at the penalty rate by December
31. After the close of the tax year, the tax becomes delinquent. Accordingly,
the occupation tax is not due on April 15 like federal, state and local income
taxes.
Per my
review, the complainants were each issued an occupation tax notice on July 1,
2023. Receiving no response or payment, Keystone issued Ms. ******** an initial
delinquent occupation tax notice on January 17, 2024. Mr. ******, on the other
hand, was issued an initial delinquent occupation tax notice on January 24,
2024.
The Local Tax Enabling Act authorizes the collection of delinquent occupation taxes by wage
garnishment. 53 P.S. §§ 6924.702-703. As Ms. ******** did not remit payment in
response to the January 17, 2024 notice, my office issued her a Notice of Intent to Garnish Wages by Certified Mail on March 13, 2024. This Notice caused her account to incur an additional
collection cost. In response, Mr. ****** and Ms. ******** remitted payment in
full satisfaction of their delinquent accounts. This complaint followed.
Based upon my review, Keystone
properly administered the complainants’ occupation taxes. They were
appropriately billed on July 1, 2023. Such bills were not returned to my office
as undeliverable or unable to forward. There is no statutory due date for delinquent
tax notices; nor is their a legal requirement that delinquent tax notices be
mailed on the same date. For purposes of the occupation tax, spouses are
considered individual taxpayers; that is, the tax is billed only to the
individual. To that end, the fact that Mr. ******’s delinquent notice was
mailed a week after Ms. ********’s is not improper.
As the complainants remitted
payment, their accounts have been closed and this matter is 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:03/11/2024
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.
Statement Date: 2/28/2024
Due date: 3/14/2024
Account Number: ********
Due to back taxes of $2440.20. I can more monthly then what they will garish my pay check for a month. I can make a payment a month of 450 dollars . Then what they will be getting a week from my check of 60 dollars. There is no reason they can't work with a US citizen when to may illegal immigrants coming here .Business Response
Date: 04/09/2024
Dear Ms. ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In her complaint, the complainant advised that she
received a Notice of Intent to Garnish Wages from Keystone seeking to collect delinquent per capita and occupational tax
balances. Further, the taxpayer stated she wished to remit monthly payments
rather than have her wages garnished.
Please be advised that Keystone serves as the
delinquent per capita and occupation tax collector for Northumberland County
and the Shikellamy School District. The County and School District each assess
a per capita tax, which is a head tax assessed on all adult residents of the
County and School District. Further, Shikellamy School District assesses an
occupation tax on all adult employed residents of the School District. The complainant has not advanced any
substantive dispute to the tax..
Please
know that I have thoroughly reviewed the complainant’s account. Per my review,
the complainant was issued Delinquent Per Capita and
Occupation Tax Notices on August 30, 2023, and January
3, 2024. As the complainant did not
satisfy her delinquent account in response to these notices, my office
proceeded with the initiation of a wage garnishment.
The Local Tax Enabling Act and Local Tax Collection Law authorize
the collection of delinquent per capita and occupation taxes through wage
garnishment. See, 53 P.S. §§ 6924.702-703; 72 P.S. §§ 5511.20-20.1. As the complainant
did not remit payment in response to the August 30, 2023 notice, nor the
January 3,2024 notice, my office issued her a Notice
of Intent to Garnish Wages by Certified Mail on February
28, 2024. Given the complainant’s failure to respond to delinquent notices, and
the number of delinquent tax years on her account my office intends to proceed
with wage garnishment. The complainant
is welcome to submit additional payments if she chooses to resolve the delinquency
faster. As state, however, the garnishment will continue until the delinquency
is paid in full.
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:03/08/2024
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.
I have an account with this business and they told me I can call in with my payment I have been trying for a week now and can never get anyone on the phone they say if I leave my number they will call me back by end of business day but they never do and if I don’t make my payments by due date they are going to sue me so I need someone to reach out so I can make my payment because they arnt following their own rulesBusiness Response
Date: 03/15/2024
Dear Ms. ******:
Thank you
for providing my office with the above-referenced complaint. Please know that I have reviewed this account
thoroughly. The complainant alleges that
he needs to make a payment, has called Keystone, but has been unable to reach
someone to make a payment.
First, Keystone
Collections Group provides taxpayers calling in with the opportunity to avoid
long hold times by selecting a call back feature. This holds the taxpayer’s place in the call
queue and triggers an outbound call to the taxpayer.
In reviewing the taxpayer’s
account, I see that on March 8, 2024, the complaint spoke with three separate Taxpayer
Service Representatives regarding his account.
The complainant was upset because he was told that if he used a credit
card to make a payment he would be responsible for a 2.5% processing fee. This processing fee is a standard fee charged
by the company that processes credit card payments. Importantly, the complainant was notified of
this fee on January 31, 2024, when he last contacted Keystone. As a result of his conversation, complainant
stated that he would mail in a payment.
I would
note, this complainant previously submitted a complaint to the BBB about his
account. As a result of his complaint,
he was allowed to enter into a payment plan agreement, but was clearly notified
that if he missed a payment or a payment was not received by an established due
date that Keystone would consider this a default and would proceed to collect
any remaining balance by wage garnishment or lawsuit.
As
complainant spoke with three separate Taxpayer Service Representatives and
explained to Keystone that he was mailing in his payment, my office considers
this matter resolved.
Thank you
for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
CounselCustomer Answer
Date: 03/16/2024
Better Business Bureau:
I have reviewed the response made by the business in reference to complaint ID ********, and once again the business is lying about the information that was given to me they said that a fee would only apply to credit card transactions not bank accounts they also said I could pay online and that is a lie also I tried it won’t let me so I did send my payment by mail and the people I spoke to where to note the amount I will check with my bank to make sure they received it if the business has any other issues I’m not afraid to go further about it but hope I won’t need to
*** ****** ** ** ******** **** ****** ** * ****** ** ***** **** ** **** **** **** ** *** ********
Regards,
****** ******Initial Complaint
Date:02/28/2024
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 Group has not sent me any notice. However, they did send a wage garnishment to my work on 2/20/2024. They sent a notice for $1, 716.07 for taxes from Parkside, PA borough. I have not lived in Parkside for 3 years. These taxes owed are from 2016-2018. According to PA.gov, Parkside only has a tax rate of .5%. which would not amount to over $1,700. It would be around $400. Furthermore, since I have not received any communication about this debt, they should not have contacted my work for wage garnishment.Business Response
Date: 03/12/2024
Dear *** ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In her complaint, the complainant advised that Keystone garnished
her wages for delinquent local earned income taxes (“EIT”) without notice.
Further, the complainant disputed the balance listed on her account, contending
that her taxing jurisdiction assesses EIT at the rate of 0.5%. Please know that
I have thoroughly reviewed the complainant’s 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.
Please know that the complainant’s effective
resident tax rate is 1.0%. While the complainant is correct that Parkside
Borough assesses EIT at the rate of 0.5%, her resident school District
(Penn-Delco School District) also assesses EIT at the rate of 0.5%.
Accordingly, the combined effective EIT rate for the complainant’s taxing
jurisdiction is 1.0%.
The Local Tax Enabling
Act (“LTEA”) 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. That is, it is the taxpayer’s legal
obligation to file a tax return, report all income, and remit any outstanding
tax, if necessary. Income taxes are not “billed” like real estate or certain
nuisance taxes.
Per my review of the complainant’s account, she and
her spouse have never filed tax returns with Keystone. 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). The income figures listed on the
complainant’s delinquent notice were taken directly from the earnings
information supplied by the DOR, which represents figures the complainant
listed on she and her spouse’s jointly filed PA 40 personal income tax returns.
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. 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 March 3, 2023.
In response, the complainant’s spouse supplied earnings information
evidencing the availability of tax credits associated with his payment of
Philadelphia City Wage Tax. Accordingly, the 2020 tax year was closed. However,
tax years 2018 and 2019 remained delinquent, as no earnings information for the
complainant was provided.
The LTEA authorizes the collection
of delinquent local earned income taxes by wage garnishment. 53 P.S. §§
6924.702 – 703. As the complainant and her spouse’s account was not satisfied,
a Notice of Intent to Garnish Wages was issued to them, by Certified
Mail, on May 25, 2023. On June 1, 2023, the complainant’s spouse contacted
Keystone and inquired about the status of the account and what was needed to
resolve the account. He was advised to supply additional documentation, which
he did. The account was placed on hold while these documents were reviewed.
On October 3, 2023, my office sent
the complainant and her spouse a document request letter requesting that they
provide copies of their 2018 and 2019 PA 40 Personal Income Tax Returns. These
documents were necessary to verify their income and check for any available
out-of-state credits. Neither the complainant nor her spouse submitted these
requested documents. Accordingly, the wage garnishment was issued to the
complainant’s employer on February 15, 2024.
Thereafter, the complainant’s spouse
contacted Keystone and ultimately supplied the requested documents. Upon review
of these documents, the 2019 tax year was closed due to tax credits, and the
2018 tax year was adjusted. Specifically, the complainant’s spouse was issued
tax credits. However, a balance remains on the 2018 tax year, as the
complainant is not entitled to any tax credits on her income.
As you can see, the complainant and
her spouse were provided ample time to satisfy their account prior to wage
garnishment. Moreover, it is critical that taxpayers file annual tax returns
with Keystone. Without the proper filing of a tax return, taxpayers are unable
to claim credits for taxes paid to other states or to the City of Philadelphia.
The complainant and her spouse were
issued an updated balance due notice on February 29, 2024. As it stands, it appears that the
complainant’s account balance is correct. Keystone has at all times acted
appropriately and in accordance with its statutory powers and obligations. 53
P.S. § 6924.509. Any garnishment payments received in excess of the current
account balance will be refunded to the complainant 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:
Christopher *. V******
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