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IRS Closes Private Collection Program, Will Increase Government Enforcement

March 7th, 2009 · 1 Comment

The IRS announced that it has ended it’s 3 year experiment with private debt collection:

After conducting an extensive review of the private debt collection program, including the cost effectiveness of the effort, the Internal Revenue Service will not renew its contracts with two private debt collection agencies, the agency announced today.

The IRS determined that the work is best done by IRS employees who have more flexibility handling cases, which is particularly important with many taxpayers currently facing economic hardship.

“After a thorough review of this program, I have decided not to renew the contracts,” IRS Commissioner Doug Shulman said.

You know what this means?

More IRS agents and a step-up in IRS enforcement activities:

“I believe this work is best done by IRS employees, and I believe we have strong support from the Administration and the Congress for increased IRS enforcement resources going forward,” [Shulman said].

Shulman also noted that the IRS anticipates hiring over 1,000 new collection personnel in FY 2009. These new employees would give the IRS the flexibility to make assignments based on the areas of greatest need rather than filtering which cases can be worked using contractor resources.

And here’s the real doozy:

“By investing in IRS employees to perform this collection work, we can be assured that we have all the tools available for helping taxpayers confronting complex situations,” Shulman said.

Now, with almost a trillion dollars hemorrhaging from the veins of government does anyone really believe that the IRS is doing this to “help” taxpayers?

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Tags: Announcements · Tax Collections

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