Bill to Kill IRS Private Collection Moved to House Calendar

A bill that would repeal the authority given to the Internal Revenue Service to contract with private debt collection agencies has been tentatively scheduled to be heard by the full U.S. House after officials return from their August vacation.

The bill, HR 3056, was approved by the House Committee on Ways and Means in mid-July by a vote of 23-18.  A spokesperson for the committee told insideARM.com that the bill has not been given a specific date for consideration, but since the committee approved it with a “strong recommendation” it will definitely go before the full House soon. The House is scheduled to begin its recess on Monday, August 6 and return on September 3.

The bill would explicitly bar the IRS from entering into contracts with private collectors.  The authority of the IRS to do so was granted in 2004, with the pilot program beginning in September 2006 with three private collectors.  Since then, one collection agency has been dropped from the contract leaving two remaining: CBE Group and Pioneer Credit Recovery. Plans currently call for the program to expand to 10 collection agencies in March 2008.

The private debt collection program has been imperiled from the beginning of the pilot. Numerous consumer groups, lawmakers, and a federal employee union have voiced their concerns over the program. Several attempts have been made to kill the program, but most focused on choking off funds need to run the initiative.