The House dealt a blow to three debt collection agencies in the running for a slot with the IRS as debt collectors for back taxes.
According to a story in the San Antonio Express News, the House is backpedaling from its previous stance. In 2004, Congress agreed to use private collection firms after unpaid taxes doubled in a three-year period. However, this week, the House took a hard line against the Internal Revenue Service working with private debt collectors, passing a spending bill that would ban such alliances.
IRS Commissioner Mark W. Everson is unhappy with the House?s decision: “Using private collection agencies would bring in extra money and help reduce the deficit,” he said in a statement.
There is still hope for the proposal. The Senate could reverse the House?s decision, putting the IRS/private debt collector plan back on track.
You can read more about this story at IRS May Be Denied Deputies.
