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The IRS and Collection Agencies

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The IRS and Collection Agencies

The IRS is close to being able to contract with private collection agencies for delinquent taxes collection and this is expected to be the largest contract opportunity the collection industry has ever seen. The IRS has been authorized to collect on an estimated $250 billion in delinquent taxes and sees $120 billion as potentially collectable. Lawmakers hope that private agencies can bring in $1.4 billion in past due taxes over the next 10 years.

   

Comments

8/25/2006 12:02:14 PM
taxpayer said:

The IRS website states that persons will be able to opt out of being subject to the collection agencies. What happens if EVERYONE opts out and requires the IRS deal with them directly. Where would the collection agencies get their 24%. Maybe a taxpayers revolt will start and the collection agencies will be the loser. Will the collection agencies bid again for this job if there is no money to be paid to them? Maybe not. Does anyone think the threat of this happening will make the collection agencies more human? Maybe not. Personally, I would pick the IRS.




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