The House on Wednesday passed a legislative provision that would prevent the Internal Revenue Service from hiring contractors to collect tax debt.
The measure, introduced by Rep. Shelley Moore Capito, R-W.Va., as an amendment to the fiscal 2005 Transportation-Treasury appropriations bill (H.R. 5025), prohibits the IRS from using private collection agencies to help out federal collectors. House members passed Capito’s language on a voice vote.
Capito’s amendment drew bipartisan support. “We shouldn’t turn [IRS tax collectors] into bounty hunters for their own personal profit,” said Rep. Chris Van Hollen, D-Md., during a floor debate over the amendment.
In his fiscal 2005 budget proposal, President Bush asked lawmakers to let the IRS hire private agencies to supplement debt recovery efforts. Current law doesn’t allow the agency to contract out collections.
“At a time when both chambers of Congress look to be significantly reducing the administration’s 2005 budget request, we need this authority to help us collect taxes and ensure [that] all taxpayers pay their fair share,” IRS Commissioner Mark Everson said Wednesday. “If this is approved, we will ensure that taxpayer privacy is protected.”
For this complete story, please visit House Votes to Bar IRS from Outsourcing Tax Collection.
