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IRS Sets Collection Agencies on Taxpayers


Aug. 21, 2006 (United Press International) The Internal Revenue Service plans to turn over the files of 12,500 delinquent U.S. taxpayers to private collection agencies in two weeks.



Privatizing collections is going to be more expensive than using civil servants, The New York Times reports. But officials say they have no choice because Congress has refused to appropriate money to hire more employees.

The collection agencies will go after those who owe less than $25,000.

Some critics have suggested that private agencies, in addition to being more expensive, are likely to be more abusive of taxpayers.

Al Cleland, a retired collection officer, told the Times that government employees always advise taxpayers to pay current taxes first and then start paying anything owed, to avoid new penalties -- but he said private collection agencies have no incentive to do that because they will be paid a percentage of back taxes collected.

Copyright 2006 by United Press International

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