House Votes to Block IRS Private Debt Collection

The House dealt a blow to three debt collection agencies in the running for a slot with the IRS as debt collectors for back taxes.

According to a story in the San Antonio Express News, the House is backpedaling from its previous stance. In 2004, Congress agreed to use private collection firms after unpaid taxes doubled in a three-year period. However, this week, the House took a hard line against the Internal Revenue Service working with private debt collectors, passing a spending bill that would ban such alliances.

IRS Commissioner Mark W. Everson is unhappy with the House?s decision: “Using private collection agencies would bring in extra money and help reduce the deficit,” he said in a statement.

There is still hope for the proposal. The Senate could reverse the House?s decision, putting the IRS/private debt collector plan back on track.

You can read more about this story at IRS May Be Denied Deputies.