Lawmakers Renew Attempt to Block Private IRS Collection

Here we go again.  Yet another bill has been introduced – in the House this time – to scuttle the IRS private debt collection initiative.  HR 695, proposed and sponsored by Chris Van Hollen (D-MD) and Steve Rothman (D-NJ) hit the House late Wednesday.  It is currently co-sponsored by 44 representatives.

This bill, unlike a Senate version that would merely block funding for the program, seeks to repeal the authority Congress granted the IRS in 2004 to outsource some tax debt collections.

By all accounts, the IRS private collection initiative is exceeding expectations.  An IRS spokesman told GovExec.com that as of the end of December, 24,500 cases had been assigned to the private collectors and $11 million had been collected.  The IRS has also said that more than 98% of people contacted by the three collection agencies that won the contract rated their work as accurate, timely and professional.  In addition, the agencies must tell consumers that they can opt-out of the program; only one-half of 1% of taxpayers contacted have taken that option.

A coalition of collection agencies that defends the program issued a press release to counter the bill.

The bill has been referred to the House Committee on Ways and Means, of which Van Hollen is a member.