U.S. IRS To End Contracts With Private Tax Debt Collectors

[Purveyor]

Source: Reuters

By David Lawder

WASHINGTON, March 5 (Reuters) - The U.S. Internal Revenue Service said on Thursday it will end its contracts with private debt collectors to bring in unpaid tax debts after a study found in-house collection efforts were more cost-effective.

The decision ends a controversial program started in 2006 aimed at collecting small, undisputed debts that the normal IRS collection apparatus was not well-equipped to pursue.

Democrats in the U.S. Congress have been trying to kill the program almost since its inception, raising concerns about its effectiveness and reports of taxpayer harrassment by private debt collectors.

"After a thorough review of this program, I have decided not to renew the contracts," IRS Commissioner Doug Shulman said in a statement. "I believe this work is best done by IRS employees, and I believe we have strong support from the Administration and the Congress for increased IRS enforcement resources."

Shulman, who was appointed to his job by the George W. Bush administration, said the IRS intends to hire over 1,000 new collection employees in this fiscal year ending Sept. 30. These new employees will provide more flexibility in deciding which debts to pursue for collection.

Read more: http://www.reuters.com/article/governmentFilingsNews/idUSN0536345520090306

[grannie4peace]

1. i always thought they were wrong!

[Renew Deal]

2. Good, now can we get rid of the private security guards guarding our national monuments

Like the Liberty Bell?

http://www.washingtonpost.com/wp-dyn/content/article/2007/01/01/AR2007010100665.html

[Donnachaidh]

3. oh those poor debt collectors! :sarcasm:

Now they'll have to go back to chasing dead people's relatives to squeeze payments out of them. :nopity:

[denverbill]

4. Good. While you at it, increase audits on the wealthy and decrease them on the middle class.

Why we are keeping a Bush appointee at IRS is beyond me.

[ohtransplant]

8. I believe it's now a 5 year term.

That's to keep out the politics they say.

[Psephos]

9. Let's add cabinet appointees, Representatives, and Senators to that list, too n/t

[aquart]

5. Another privatization failure.

Quelle surprise.

[williesgirl]

6. Off to the greatest page. No way should private firms get our data, this was just plain wrong from

the gitgo.

[Fire1]

7. Outsourcing is always a fail. Good!

[antimatter98]

10. Well, yes, all IRS has to do is shut down your paycheck and/or take your bank accounts..

they can do this with the click of a few keys. and don't need an outsourced
company to do it.

If the BANKS had to deal with the enforcement that CITIZENS do, we'd not be in
the current mess we are in. The people are totally locked down, while the elite and
corporations run free unchecked and never thrown out of their houses or have their
paychecks seized. We do.

Why do we allow this?

[MarinCoUSA]

11. The way the real elites rig US tax admin, it's real class warfare BY THE RICH!

on the rest of us down class schmoes. I'll like to know the political contribution/affiliation profile of these debt collection companies.

[RandomThoughts]

12. GOP argument

Government wont work, private companies are always cheaper and better.

But what do we see, corruption and cronyism to funnel tax dollars to private companies owned by contributors.
No bid contracts
Prisons for profit, and judges payed to put people in jail, or lobbyist increasing jail time.
Health care, pffft enough said.
Contract mercenaries, patrolling US cities

Just another GOP talking point circling the drain.

[WorseBeforeBetter]

13. Good. I want to see MUCH more done in-house.

I'm not going to make a sweeping statement about what a racket ALL of consulting/contracting is, but much of it is. I worked at a consulting firm for a year and was STUNNED at what people were willing to pay for what I considered common phucking sense.

[fascisthunter]

14. good... fricking Vampires

[sarcasmo]

15. This was a bad idea from the jump, Good News.

[Stinger2]

16. Bush Administration to Cut the number of I.R.S.Tax Auditors by almost 50%

Bush Administration to Cut the number of I.R.S.Tax Auditors by almost 50%

The Bush Admin is moving to eliminate the jobs of nearly half of the lawyers at the IRS who audit tax returns of some of the wealthiest Americans. six IRS estate tax lawyers said in interviews that the cuts were the latest moves behind the scenes at the IRS, to shield people with political connections And tax-avoidance devices from thorough audits

http://digg.com/politics/Bush_Administration_to_Cut_the_number_of_I_R_S_Tax_Auditors_by_almost_50?FC=PRCK1

Billions of tax dollars never collected and cuts to the rich, In Class Warfare, Guess Which Class Is Winning?

http://www.nytimes.com/2006/11/26/business/yourmoney/26every.html

[dixiegrrrrl]

18. Any statute of limitations on those incorrect tax returns?

Maybe there is a chance some of the non-payments could be collected?

[Lasher]

20. There is no statute of limitations on tax evasion. n/t

[lib2DaBone]

17. Good. Let them go flog the Washington Bankster/Gangsters...

[No Elephants]

19. Please don't forget about the tax evaders in government or the rich. Thanks.