IRS wins battle to retain private debt collectors
A provision in a Treasury Department spending bill would limit the IRS to spending no more than $1 million next year on the private debt collection program. That limitation would force the IRS to close the program.
The IRS debt collection program enlists the aid of professional debt collection agencies to chase down delinquent taxpayers, typically those who owe in the range of $5,000 to $10,000. The IRS has stated it does not have the manpower to pursue these non-taxpaying citizens.
Last year the House voted to repeal the program, but no action was taken in the Senate and the program remains in place.
The program began in 2006. To date, the outside collectors have brought in about $20 million. It is expected that more than $2 billion will be collected by the private collection agencies over the next 10 years.