(Washington D.C.)- The House of Representatives today approved by a vote of 232-173 H.R. 3056, the Tax Collection Responsibility Act, which would repeal the Internal Revenue Service’s authority to contract out tax collection to private collection agencies.  Rep. Sander Levin (D-Royal Oak), who was an original co-sponsor of the legislation, praised the House’s action to end this failed experiment in outsourcing essential government services.

Earlier this year, the House Ways & Means Committee held hearings into the IRS private tax collection program to investigate taxpayer complaints and the program’s effectiveness.  During the hearing, the Committee heard disturbing tape recordings of debt collectors harassing taxpayers and witness testimony - including from the IRS Commissioner - that the IRS could collect unpaid Federal taxes more efficiently than private debt collectors. 

“The outsourcing of tax collection has led to widespread harassment of taxpayers and now the IRS admits that allowing private companies collect these tax debts is far more expensive than having IRS employees do the work,” said Rep. Levin.  “We need to restore accountability and professionalism to the basic government task of collecting taxes.”

H.R. 3056 would also delay the application of an onerous three percent withholding requirement on businesses, and discourage individuals who renounce their U.S. citizenship to avoid paying taxes.

To view a summary of H.R. 3056 click here.

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