WASHINGTON, D.C. - The Ways and Means Committee today passed H.R. 3056, the Tax Collection Responsibility Act of 2007, to repeal the use of private debt collection companies to collect Federal income taxes, 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.
The Committee approved the measure by a vote of 23 to 18. Earlier in the year, the Committee held hearings investigating the use of private debt collectors to collect Federal tax revenues. During the hearing, witnesses - including the Internal Revenue Service (IRS) Commissioner - concluded that the IRS could collect unpaid Federal taxes more efficiently than private debt collectors.
"The private debt collection program is an insult to the American taxpayer and our Federal tax system," said Oversight Subcommittee Chairman John Lewis (D-GA). "The collection of taxes is a core government function. It is the Internal Revenue Service’s (IRS) mission. We found that, in addition to taxpayer harassment, this program wastes tax dollars by paying a bounty up to 24 percent to the debt collectors. We were told by the IRS Commissioner that IRS employees could do the job more efficiently for less money. Enough is enough, we must stand up for taxpayers and we must stand up for IRS employees by ending this program."
A summary of H.R. 3056 is attached.
