IRS wins battle to retain private debt collectors

Representative Jim McCrery (R-LA), the leading Republication on the House Ways and Means Committee, has come to the defense of the IRS and their controversial private debt collectors. McCrery cited estimates that the IRS could lose nearly $70 million if they are forced to eliminate the program.

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.

You may like these other stories...

Boehner addresses GOP priorities ahead of midterm electionsHouse Speaker John Boehner (R-OH) on Thursday delivered what amounted to closing arguments ahead of the November elections, laying out a list of Republican...
As anyone who's ever been through a divorce can attest, the pain of parting with your spouse isn't just emotional—the fallout from divorce can wreak financial havoc as well long after the dust in the courtroom...
Former DOJ Tax Division head Kathryn Keneally joining DLA Piper in New YorkGlobal law firm DLA Piper announced on Thursday that Kathryn Keneally, the former head of the US Justice Department Tax Division, is joining the firm...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.