For Immediate Release: Tuesday, December 16, 2008 | Contact: Matthew Beck (202) 225-8933 Brenda Jones (202) 225-3801 |
Ways and Means Leaders Urge IRS to End Private Debt Collection Service Taxpayers deserve to work with trained IRS professionals who are more efficient at collecting tax debt WASHINGTON, D.C. -- Ways and Means Committee Chairman Charles B. Rangel (D-NY) and Oversight Subcommittee Chairman John Lewis (D-GA) joined fellow Committee members in a letter today urging President-elect Barack Obama to end the Internal Revenue Service’s (IRS) use of private contractors to collect Federal taxes. The IRS is currently deciding whether to renew the existing contracts for another year. The Committee has taken the lead in recent years on efforts to end the private debt collection program, arguing that tax collection is an inherent Government function and that professional IRS agents are more efficient at collecting outstanding tax debt. In 2007, the Committee conducted an investigation into the use of private debt collectors and found that their services often subjected taxpayers to undue harassment and confusion not associated with the use of trained IRS agents. Text of the letter sent to President-elect Obama is and pasted below and a signed copy is attached: December 16, 2008 President-Elect Barack Obama The Office of the 2008 Presidential Transition Washington, D.C. 20270 Dear President-Elect Obama: Congratulations on your recent victory. We are writing concerning the Internal Revenue Service’s (“IRS”) use of private collection agencies to collect unpaid Federal tax liabilities. Presently, the IRS has contracts with two companies for the collection of unpaid Federal income taxes. We understand that the IRS is in the process of determining whether to exercise its option to extend these contracts for a one-year period, which would run from March 8, 2009, to March 7, 2010. In the 110th Congress, the House passed three bills that would repeal the authority of the IRS to use private collection agencies. The collection of Federal taxes is an inherent government function. Former IRS officials have testified that the IRS can collect Federal taxes cheaper and more efficiently than the private collection agencies. We respectfully request that your Administration not proceed with renewing the existing contracts or expanding the program. In light of the current economic situation, it is important that the Administration protect taxpayers by ensuring that they deal with the IRS directly to work through any difficulties. Thank you for your attention to this matter. We look forward to working with you and your Administration during the upcoming Congress. Respectfully yours, _________________________ ___________________________ Charles B. Rangel John Lewis, Chairman Chairman Subcommittee on Oversight ________________________ ___________________________ Pete Stark Sander M. Levin ________________________ ___________________________ Jim McDermott Richard E. Neal ________________________ ___________________________ Earl Pomeroy Earl Blumenauer ________________________ ___________________________ Shelley Berkley Joseph Crowley ________________________ ___________________________ Chris Van Hollen Kendrick Meek ________________________ ___________________________ Allyson Y. Schwartz Bill Pascrell cc: Peter R. Orszag Director-designee, Office of Management and Budget Timothy F. Geithner Secretary-designee, Department of Treasury Douglas R. Shulman Commissioner, Internal Revenue Service ### |