Death Knell for Private Tax Collection?

Yesterday, members of a House Appropriations subcommittee celebrated Tax Day by grilling new IRS Commissioner Douglas Shulman about the agency's use of private debt collection agencies. IRS Taxpayer Advocate Nina Olson reported early this year that the program has a "dismal return on investment." But that didn't stop the IRS from renewing its contracts with two debt collection firms last month.

Shulman pleaded ignorance of the whole issue, saying he's only been on the job for three weeks and needs more time to study it.

House members seem disinclined to give him that time. After Tuesday's hearing, the House voted 238-189 to prohibit the use of private firms for tax debt collection. “The collection of taxes is an inherently governmental function that should be restricted to properly trained and proficient IRS personnel,” said National Treasury Employees Union president Colleen M. Kelley after the vote.