Released: September 04, 2006

Knock, knock—IRS sends collectors calling

Source: By Kevin McCoy, USA Today

Beginning this week, thousands of Americans who owe taxes to the federal government will start getting phone calls to pay up — from private collection agencies, not the IRS. Despite congressional opposition and criticism from a federal employee union and a taxpayer advisory panel, the IRS is giving three collection agencies information on 12,500 taxpayers who owe less than $25,000 and have not disputed the debt.

The IRS has moved to reassure taxpayers about the plan, even outlining steps to guard against potential scam artists posing as private collectors. “We are working hard to protect taxpayer privacy and taxpayer rights,” IRS Commissioner Mark Everson said last month announcing the plan.

Critics argue that privatizing any part of the IRS’ traditional collection role would increase the agency’s costs and raise privacy issues, as well as create potential for fraud. “We’re continuing to do all we can to shine a light on this program,” says Colleen Kelley, president of the National Treasury Employees Union, which represents IRS employees. “When taxpayers hear about what the government is doing, they are outraged.”

The IRS national taxpayer advocate and the Taxpayer Advocacy Panel, an advisory board chosen by the IRS, have questioned parts of the plan.

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