I have always had concerns about outsourcing tax debts to private collection agencies (PCAs). First, I believe tax collection is an “inherently governmental function” within the meaning of section five of the 1998 FEAR Act that should be performed only by federal employees. Second, as a TAS study of the last private debt collection (PDC) initiative showed, the IRS is more efficient at collecting tax debt than PCAs are. Now that Internal Revenue Code (IRC) § 6306(c) requires the IRS to outsource some tax debt, my job is to ensure that its PDC program operates in accordance with the law and respects taxpayers’ rights. Read More
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