A Huge Collection Contract Behind a Huge Wall of Secrecy

"Seal up your lips and give no words but mum." – John Hume in Shakespeare’s Henry VI, Part 2

Those associated with the Internal Revenue Service’s initiative to outsource some debt collection to private agencies have read their Shakespeare. Although the IRS confirmed to insideARM yesterday the extension of the collection contracts with their two vendors, CBE Group and Pioneer Credit, little else was said of the program (“IRS Renews Collection Contracts with Two Agencies,” March 4).

In fact, both CBE and Pioneer declined to comment, the IRS declined to provide any more information and even the lobbyist representing the collectors failed to return calls. And I can’t say I blame them.

The program is under the most concerted and threatening attack it has yet to endure. A bill killing the program is before a Senate committee, majority party lawmakers and opposition groups are dialing up the rhetoric and the national taxpayer advocate has called for the program’s termination. Seemingly, the only allies the program counts in the fight are minority party lawmakers whose first priority is re-election and a President so devoid of political capital it’s probably a bad thing he supports the program.

Lost in all the secrecy and whining (by me) about a lack of allies is the current month and year: March 2008. The tentative timeline laid out by the IRS when the program began called for more collection agencies, up to 10, to be added to the contract this month. In an interview earlier this year, the head of one of the collectors on the contract said it’s ready for expansion (“Expand IRS Outsourcing Program: CBE Chief,” Jan. 17).

So how should we take yesterday’s news? Does it mean that the program won’t expand, that the IRS decided to leave the program in pilot until the storm blows over? Or are they working behind the scenes on a major vendor procurement and we’ll get an announcement any day now? And does any of it even matter, since the program may be destined for the chopping block anyway?