FYI- IRS to use private collection agencies.....

[url]http://story.news.yahoo.com/news?tmpl=story2&cid=808&u=/dowjones/20021015/bs_dowjones/200210150027000019&printer=1[/url]


WASHINGTON -- Unable to collect more than $200 billion in back taxes, the Internal Revenue Service is considering using private collection agencies to get taxpayers to pay the government, Tuesday's Wall Street Journal reported.

The IRS has been circulating a detailed document asking some of the same firms that track down credit-card deadbeats to help it design a plan for private collectors to go after taxpayers in an attempt to gather up what one recent study estimates might be as much as $50 billion of the total.

According to congressional and industry officials, the IRS could put out a draft of its plan as early as next month, and would begin doling out the work late next year, either on a temporary or a permanent basis.

The IRS, which began distributing its request earlier this year, is still deciding whether bill collectors should be paid a flat fee or keep a percentage of the taxes collected. Under the latter option, especially, bill collectors could reap billions of dollars in revenue over the coming decade.

"Obviously the (IRS) has an obligation to make sure we're doing everything we can to collect debts on the books," says Pamela Olson, assistant Treasury secretary for tax policy. "To the extent we're not getting it done we ought to look at other options," including private bill collectors. Some Bush administration officials believe they need congressional approval for the change. They are considering including the proposal in the White House's 2004 budget plan, due out early next year. The IRS is part of the Treasury Department (news - web sites).

Wall Street Journal Staff Reporter John D. McKinnon contributed to this report.

[Ladynred]

Just what we need, harrassing jerks from CA's trying to collect IRS taxes !!! Will THEY be subject to the FDCPA ?? That's one question I'd like to see answered. I can hear it now, the scumbags with the foul mouths and insults will be running full-speed to get those collection accounts and if their behavior is not leashed by the IRS or the FDCPA, some people are going to be in for an even bigger nightmare than the IRS who mostly sends out letters alone.. UGH! Can you imagine scum like CAMCO coming after you for back taxes ??? What a frightful idea !!!!

[bigun]

I got a few questions about this as well. Say, you demand validation: does the IRS give a CA a copy of your tax return? I think you'd need to amend the FDCPA and if that happens, watch out. I'll bet all sorts of things will be snuck in water down enforcement of the entire act.