New Front Opened in War on IRS Private Collectors
Another bill passed out of a House committee yesterday would kill the IRS private debt collection program. This one is attached to an AMT temporary fix.
Another attempt to kill the Internal Revenue Service private debt collection initiative has passed a U.S. House of Representatives committee and is attached to a high-profile bill intended to provide a temporary fix to a hot-button tax issue.
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The House Ways and Means Committee passed Thursday HR 3996, a one-year fix to the alternative minimum tax (AMT), a measure that both Democrats and Republicans have vowed to enact. A provision eliminating the IRS's authority to contract with private debt collectors was attached to the bill.
A major opponent of the IRS collection program, the National Treasury Employees Union (NTEU), reported this morning in a press release that the program is lagging behind projected revenue totals. The group said that in the program's first year, private collectors have brought in $32.1 million, far short of the projected $45.7 to $65 million, although it is unclear whether the loss of one of the three original contractors was factored in to the numbers.
A Senate committee is considering a separate bill to kill the program (“House Votes to Kill IRS Collection Program; Veto Threatened,” 10/11).
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