Tuesday, April 29, 2008

House of Representatives passes bill to end private collectors collecting taxes for the IRS

The House of Representatives approved a bill on "tax day" that would end the IRS's use of private debt collection agencies to locate unpaid taxes. The Taxpayer Assistance and Simplification Act of 2008 (H.R. 5719) would ban the federal government from entering into new contracts with the private collectors and the extension of the existing contracts with two companies. (A third company, a scandal-plagued firm based in Texas, was dropped from the program for reasons the IRS would not make public).

Similar legislation was passed by the House last year but the Senate did not act.

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