IRS private debt collection lives on
The IRS's private tax debt collection program will continue after members of the House of Representatives stopped efforts to eliminate the initiative. Rob Wells of Dow Jones Newswires tells the story in this Associated Press article, which appears on the SmartPros Web site:
"Rep. Jim McCrery, R-La., stripped a measure from a 2008 fiscal year IRS budget that was designed to choke off funding for outside collection agencies. McCrery's action came as the House of Representatives debated a broad $21.4 billion spending bill for the IRS and other regulatory agencies.
"The move is a victory for the IRS and the Bush administration, which advocated hiring private tax collection agencies to pursue delinquent federal income tax debts.
"Democrats such as Ways and Means Chairman Charles Rangel, D-N.Y., have opposed using private tax collectors, saying IRS workers can do the job more cheaply and more effectively."
Private collectors have brought in more than $20 million since the program was launched in September 2006, according to the article.
Want to know more about private tax debt collection? Check out these IRS resources:
- Questions and answers
- Simple steps to avoid tax scams related to private debt collection
- Complete details about the program
What do you think? Is private debt collection a good idea?