Thread: IRS gives up on private debt collection

The use of private debt collection agencies to collect overdue taxes was started in 2006. Some in Congress have agitated for an end to the program from its very beginning. Now, after an extensive review of the cost-effectiveness of the program, the IRS announced that it will not renew contracts with the private agencies.

Instead, the IRS plans to hire an additional 1,000 collection personnel in 2009. The Commissioner stated that collection work is best done by IRS employees who, in these troubled economic times, have more options in dealing with taxpayers struggling to meet their tax obligations.

Source: IRS

That's an interesting thought. I didn't realize IRS was outsourcing collections too. If they can just levy the bank accounts, I wonder why they have to hire 1000 people to collect money from delinquent tax payers?