We told you two years ago about the IRS retaining private debt collectors for income tax. The House of Representatives, led by rising Dem star Chris Van Hollen of Maryland, voted by a wide margin to end the program.
Van Hollen used strong words when speaking against the program, which was controversial from its inception and suffered from higher than anticipated start up costs. Republicans claimed the program had not been given enough time to work while Democrats said the initial results precluded the program from continuing.
When we spoke with consumers, most were less concerned about a private agency collecting money owed the government, but expressed uneasiness over tax records, even if only the amount due, being shared with a non-governmental agency. As one taxpayer told us, "What if the person is appealing the tax bill or fighting it? The IRS already makes enough mistakes. I wouldn't want them telling collection agencies I was a deadbeat."
Labels: collections, IRS, taxes, Van Hollen
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