WASHINGTON, DC - Today, Ways and Means Oversight Subcommittee Ranking Member John Lewis (D-GA), Ways and Means Committee Ranking Member Sander Levin (D-MI), and Budget Committee Ranking Member Chris Van Hollen (D-MD) issued a statement expressing concern about a provision in the Senate-approved highway bill that would require the IRS to use private debt collectors to collect tax debts in order to help offset the cost of the highway bill:
“It is misguided and harmful to taxpayers to use private debt collectors to collect outstanding tax liabilities. When the IRS most recently used private debt collectors in 2006, the program actually lost money. After hearing numerous complaints from a wide variety of taxpayers, many of whom were subjected to harassment and other inappropriate collection techniques, this costly program was terminated. We agree that it is vitally important that we fully finance a robust investment in our nation’s infrastructure. However, we should not pay for that investment by subjecting our taxpayers to these abusive practices. This provision must be removed."
Eleven Democratic Members filed an amendment to remove this provision from the highway bill being considered today by the House Rules Committee. The sponsors of the amendment include Reps. John Lewis (D-GA), Sander Levin (D-MI), Chris Van Hollen (D-MD), Charles B. Rangel (D-NY), Jim McDermott (D-WA), Xavier Becerra (D-CA), Mike Thompson (D-CA), Danny K. Davis (D-IL), Linda Sánchez (D-CA), Earl Blumenauer (D-OR), and Joseph Crowley (D-NY).
Additional background resources:
* Senate letter in opposition to private debt collector provision in highway bill (Oct. 5, 2015)
* Letter from National Treasury Employees Union in opposition to private debt collector provision (Oct. 23, 2015)
* Letter from IRS Commissioner John Koskinen in opposition to private debt collector provision (May 9, 2014)
* Letter from consumer and civil rights groups in opposition to private debt collector provision (July 24, 2015)
* Op-ed from Washington Post opinion writer Catherine Rampell, “The Senate’s wrongheaded IRS proposal "
* Blog from Center on Budget and Policy Priorities, “Private Debt Collectors a Misguided Approach for IRS "
* Remarks from Oversight Subcommittee Ranking Member John Lewis at a hearing on the IRS’s use of private debt collectors in 2007 (here )
* Summary of complaints reported by debt collectors (here)
