In an effort to downsize, and believing that this will be more cost effective, IRS handed over collection of certain delinquent accounts, nationwide, to collection agencies. Would you respond more if you got phone calls from a collection agency, than you would if you had letters from the IRS?
It has been stated that the collection agencies will not make any money, unless they collect money; they may turn to tactics more agressive than the IRS letters. Accounts that would be considered, 'high dollar' would not be turned over to collection agencies, as IRS has more leverage in the form of seizure, levies, liens, summons, Offers in Compromise, etc. These agencies will not have that capacity, but who know what they may try.
On a worse note, who do you trust more with your private, personal information? An individual that has 'big brother' watching over them, that have consequences of job termination, fines, and jail terms for disclosing private taxpayer information, or someone that works for $7-$10 per hour making phone calls and sending letters, and has no major repercussion. Senators raised the question of cost, noting that the bounty to be paid to the private collectors will be eight times higher than the cost of having IRS employees perform the work-24 cents on the dollar versus only three cents per dollar to have the professionals at the IRS do the work.
Identity theft is constantly on the rise, and this initiative only promotes more. If you have concerns, you should voice your opinion with your State Representive, Congressman, etc.
Sen. Edward M. Kennedy (D-Mass), Sen. Patty Murray (D-Wash.) and Sen. Byron Dorgan (D-ND) have already opposed this action to IRS Commissioner Mark Everson. The House already voted to stop the IRS from using any appropriated funds in fiscal 2007 to implement the program.
Sen. Murray, in her letter, told Everson, "I'm deeply concerned that your plan would not adequately protect taxpayer privacy, would not ensure all taxpayers are treated fairly and respectfully, would not guarantee any cost savings to the U.S. Treasury, and would pre-empt the Senate's debate over outsourcing tax collection."
This action does no good in fixing our budget deficit, and further puts the American taxpayer in harms way. Take time to voice your opinion on this action.
Published by Deb Bryant
I am the parent of a 32 yr old son and 9 yr old granddaughter. I work full-time for the government (22+ years) and retired from the Army Reserves/National Guard with 21 years of service. I've been overseas... View profile
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