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...

IRS audits less than 1 percent of big partnershipsAccording to an April 17 report from the Government Accountability Office (GAO), the IRS audits fewer than 1 percent of large business partnerships, Stephen Ohlemacher of the...
Legislation coming out of Washington just might reduce homeowners' burden for disaster insurance. It's a topic very much on everyone's minds since the mudslide in Oso, Washington. The loss of human life was...
Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...

Upcoming CPE Webinars

Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.