Senator Defends IRS Private Debt Collectors After GAO Report
The Government Accountability Office issued a report critical of the IRS debt collection process. A prominent Senator noted that the IRS promised better results when it killed a private debt collection program this year.
The Government Accountability Office late last week released a report on IRS debt collection efforts detailing the agency’s failing in properly notifying delinquent tax payers. A prominent Senator publicly noted that the IRS is floundering after cancelling its private debt collection initiative.
A report issued last week by the GAO, “TAX DEBT COLLECTION: IRS Needs to Better Manage the Collection Notices Sent to Individuals,” noted that the “IRS lacks documentation for and evaluations of its business rules for notices to individuals to assure that the collection notice phase is achieving desired results.”
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The GAO was evaluating how efficiently the IRS uses the notification phase of its collection process, the first phase in the process.
Senator Charles Grassley (R-Iowa), Ranking Member of the Senate Finance Committee, said in a statement Monday, “The IRS and some members of Congress rushed to cancel the private debt collection program, arguing that the IRS can do the job. Meanwhile, the tax gap is $345 billion a year. Today’s report shows the IRS’ ways of collecting taxes are wasting money and not getting the job done.”
The IRS in March of this year, with the backing of many members of Congress, opted against renewing the contracts of two debt collection agencies that were helping to recover back taxes (“IRS Kills Private Debt Collection Program,” March 6). A popular argument at the time was that the IRS could more efficiently collect taxes using internal resources, rather than relying on private sector expertise.
Grassley was a longtime supporter of the IRS private debt collection program; one of the firms collecting on the contract, CBE Group, is headquartered in his state.
The report issued last week by the GAO was written at the request of the Senate Finance Committee and was addressed to Grassley and committee chairman Max Baucus (D-Mont.)
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Comments
Comment from Collection Veteran Since 1964 on November 2, 2009 at 12:05PM EST
At least one Senator understands the benefit of our industry.
Comment from Anonymous on November 2, 2009 at 12:27PM EST
...another example of the government knows best.
Comment from SVP - mid size agency on November 2, 2009 at 1:46PM EST
Not that it will do any good, the unions are way to influencial with this administration - more likely Obama and crew will nationalize all agnecies
Comment from Anonymous on November 2, 2009 at 4:23PM EST
This senator also thinks it's a great idea to subsidize making fuel from corn. He also opposses every progressive concept ever conceived. In an era where we need progressive leaders, this guy and his brain of grits is lost in a cornfield. If you need to someone to support a concept you need to look further tha this yokel.
Comment from Anonymous on November 2, 2009 at 5:35PM EST
No government run program. Such as the IRS will ever be as effect as private industry. This administration has done nothing to help this County. It will try to destroy what is the USA. There goal - Socialize America. It's a Obama-nation.
Comment from Tasoma on November 3, 2009 at 11:55AM EST
Gov't programs do not work whether it is Health care, IRS collections or Student Lending. Unfortunately, the federal government believes they can spend our money better than we can. Thanks Obama.
Comment from Robert on November 3, 2009 at 12:04PM EST
The current administration is not going to destroy the country, uneducated and biased persons will do that on their own. Blaming the President for a decision congress makes is pure ignorance. And guess what? Socialistic ideology provided the (two?) years of free education you received, maybe you could have paid more attention in your English class.
Comment from Uncl Lar on November 3, 2009 at 12:13PM EST
The above comment, in my opinion is a waste of bandwidth. I didn't vote for him either, but one has nothing to do with the other. IRS has effectively been in the collection business basically since it's inception. That being said, any contingency collector will be far more productive than a civil servant could ever hope to be. Simple difference - motivation! Stop drinking the Obama kool aid will ya? He's one and done. We will be fine.
Comment from Oh please on November 4, 2009 at 5:06PM EST
"Gov't programs do not work"
Yeah, say that to the military's face. I thought so.
Comment from Anonymous on November 11, 2009 at 7:10PM EST
Has anyone else noticed that the posts from writers who hate Obama and fear government programs are riddled with anger and errors, but the posts from others are articulate, well-worded, and grammatically correct? I'm writing from Canada, a country where we don't hate our government because our government provides progams that offer education, healthcare, and a high standard of living for all. Just wondering...