private collection no more?

David Goch, Washington Legislative Counsel for the CLLA, reports that last week Sens. Dorgan (D-N.D.) and Murray (D-Wash.) introduced S. 335, a bill to suspend any further use of private debt collectors by the IRS. the bill draws on a report to congress by National Taxpayer Advocate Nina Olson and cites the following as reasons for disbanding the program:

* IRS employees collect tax debts for 3 cents on the dollar, while private collectors are paid up to 25 cents;
* private collectors have less incentive to train employees on taxpayer rights; and
* tax collection is a core function of the Federal Government.

at least for the moment however, the IRS will continue to use private collection agencies, which have been and continue to be more successful than the agency itself at collecting delinquent taxes.

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