IRS Presses Ahead With Privatization of Tax Debt Collections - 09/14/06

By Doug Cunningham

The IRS continues to move ahead with a plan to privatize tax debt collection, despite opposition from the National Treasury Employee’s Union (NTEU) and from some members of Congress. Senator Byron Dorgan has introduced legislation that would prevent the IRS from using private companies to go after tax debts. NTEU President Colleen Kelley says the plan to privatize tax debt collection is unwise and costly and it compromises ther personal information of thousands of taxpayers. Senator Dorgan says the plan will cost up to 24 percent of the money collected when IRS employees can collect the debts for three cents on the dollar.