Sen. Chuck Grassley of Iowa today made the following comment on the re-instatement of private firms to collect tax debt for the IRS. The provision was enacted as part of the five-year highway bill given final congressional approval and signed into law late last week. The provision takes effect immediately and requires the IRS to enter into qualified tax collection contracts within three months. The official revenue estimate from the non-partisan congressional Joint Committee on Taxation on the new provision is available here.
“The IRS allowed politics to trump its responsibility to collect unpaid taxes when it decided to prematurely discontinue the private debt collection program in 2009. As we know from an estimate by the Joint Committee on Taxation, this meant leaving billions of dollars in uncollected taxes on the table. This provision requires the IRS to once again use private contractors to collect overdue taxes that the IRS isn’t attempting to collect. These are taxes that are owed and not in dispute. This provision provides the IRS with a tool to pursue these unpaid taxes while respecting taxpayer privacy and rights. The IRS should implement this program without delay.”
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