Private IRS collection firm=trouble already

January 13, 2007

On January 9, 2007 the Taxpayer Advocate office called on Congress to repeal the authority it gave the IRS to hire private debt collections.  When we first wrote on this subject we expected that paying these firms 25% of every dollar they collected would create “collection abuse” problems.  The firms began in September of 2006 and problems began soon after.  This effort is failing and should be ended ASAP.   

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