WASHINGTON – The Internal Revenue Service (IRS) recently released data showing that the Private Debt Collection (PDC) program, a public/private partnership that works to bolster the U.S. Treasury, strengthen the effectiveness of the IRS and ensure fairness in the federal tax system, is fully cash positive after just one year. Agency projections indicate that trend will continue moving forward.
IRS data shows that the program has brought in more than $56 million in tax revenue for the U.S. Treasury Department and that total costs have totaled approximately $55 million.
“Contrary to critics’ claims and despite its slow-roll out, the IRS private debt collection program is already demonstrating that it can more than pay for itself with revenues returned to the Treasury,” Grassley said. “The most recent data shows revenue returned to the Treasury exceeds all associated program expenses, including 2016 and 17 set-up expenses. A program that works as it should is a rarity in the federal government.”
In the first three quarters of 2018, the PDC program has returned more than $30 million to the Treasury. It has also provided more than $9 million to the IRS that it can use to hire and train compliance personnel.