Update: IRS Won’t Use Private Debt Collectors
EmailThe IRS is said to be curtailing its use of private debt collection agencies to chase tax deadbeats. We’ve reported on the sometimes-abusive practices the private firms have used to pressure tax debtors to pay up. The program has been roundly criticized by members of Congress, including House Ways and Means Chairman Charlie Rangel (D-NY), and by consumer advocates. Including complainst about abusive and deceptive phone calls, critics said the private contractors were expensive. You can hear recordings of some of the abusive calls here. Others, including Sen. Charles Grassley (R-IA), have said the program should be given a chance to work. In a bit of Washington gambitry, Grassley announced the policy change after (he says) Geithner alerted him to it in a private conversation. In a statement distributed "TO: Reporters and Editors," Grassley blasted the move, saying it would cost jobs. "It’s hard to believe that after worrying so much about keeping people employed, the administration has chosen this route," Grassley’s statement read. He also suggested the Obama administration was kowtowing to the Treasury employees’ union, which had fought against outsourcing the collection work to private companies. Geithner’s decision comes as the Senate struggles to pass its omnibus spending bill, which includes a provision that would force the IRS to discontinue its use of private debt collectors.
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how about limiting the aggressive and “abusive practices” of these private debt collection firm in chasing down private debts (mortgages, credit cards, car loans, student loans, etc)?
After all with the government now, essentially, owning most of the large banks shouldn’t we not be relying on private “abusive” debt collectors in these cases also??
Posted by: Ed | March 6, 2009, 2:20 pm 2:20 pm
I agree with Ed. That’s just the IRS a small fish in a big ocean. Get rid of private debt collectors completely. Congress talks a good game but how much money do these private collectors funnel into congressional hands? How many times has a bank sold off a loan to another bank only to be sold off again.
Posted by: Dan K | March 6, 2009, 10:22 pm 10:22 pm
I agree with ed. Loans are sold and resold. Private debt collectors probably have ties to congress. Get rid of the practice alltogether.
Posted by: Dan Kolich | March 6, 2009, 10:27 pm 10:27 pm
No big deal, they are just going to put bank levys on accounts. As soon as I became unemployed they put a levy on my account without so much as a letter to let me know that I owed money from 9 years ago. Joseph Stalin would love it here in America, his kind of place.
Posted by: Johnny's moving elsewhere | March 7, 2009, 11:44 am 11:44 am
Interesting. Are they going to use IRS employees to do this or do they feel a little bad right now in the recession going after people who already don’t have money?
Posted by: elementaryfinance | March 7, 2009, 11:48 pm 11:48 pm
Of the things in my life I am proud of, I can say I am proud to have worked for these guys: Dana L, Mort C, Sheldon C, and Don A.
These were men of probity and courage, imagination, commitment, and dedication to seeing the US public served effectively, fairly, and courteously by a government agency that has a difficult job, but in most times does it well.
(1985 was an exception, there have been other times of difficulty, some due to systematic and pervasive weaknesses of leadership and attitude.)
But I count myself fortunate to have worked for the Internal Revenue Service, as a Revenue Officer collecting delinquent taxes and getting unfiled returns filed, and in other jobs, under these men and working with many others who I greatly respect and fondly recall.
And I think all Americans should count themselves fortunate when such leaders are available and willing to serve their government. I hope that we can find more of them at this difficult time.
Tax collection is a public function – I am glad that the “private collection agency” experiment is drawing to a close, and hope that those in the public service called upon to do this work do so with utmost integrity, dedication, and courtesy to their fellow citizens. I tried to do that, and I feel well rewarded for that effort.
Posted by: Jim Pivonka | March 8, 2009, 1:00 am 1:00 am