WASHINGTON, D.C. -- Ways and Means Oversight Subcommittee Chairman John Lewis (D-GA) today joined 15 of his colleagues on the Committee in introducing legislation to repeal the Internal Revenue Service’s (IRS) authority to use private contractors to collect Federal taxes. The Committee has taken the lead on efforts to end the private debt collection program, and this legislation is similar to measures that have passed the House of Representatives in recent years. Chairman Lewis and other Committee Members have advocated for repeal of 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.
“The collection of Federal taxes is a core government function that should only be performed by the IRS," said Ways and Means Oversight Subcommittee Chairman John Lewis (D-GA). “The Ways and Means Committee has received testimony from a number of sources, including former IRS officials, that the IRS can collect Federal taxes cheaper and more efficiently than the private collection agencies. This bill would end this program once and for all. In this economic downturn, taxpayers must be able to deal with the IRS directly to work through any difficulties they may encounter."
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. Further, the Committee learned that the IRS’ collection program includes counseling and tax account adjustments not offered by private collectors. IRS taxpayer services are critical to ensuring a tax system fair to our taxpayers.
