The Internal Revenue Service unveiled its plan to turn over collection of outstanding tax debt to private companies, as required by Congress though a law passed in 2015.
The IRS identified four companies to collect unpaid taxes deemed “inactive” by the agency, meaning government personnel have ceased working on the accounts. The agency said “older, overdue” tax accounts and a lack of resources would prompt the IRS to tap the contractors to take up the collection.
CBE Group, Conserve, Performant and Pioneer will serve as the private collection agencies, or PCAs. Congress included as a provision of a highway bill late last year the requirement that the IRS outsource the debt collection, with supporters of the policy saying industry could more effectively bring in money Americans owe on their taxes. The law had required the IRS to enter into the contracts within three months, but they were just announced Monday and will not take effect until the spring of 2017 at the earliest.
Which is less than six months away.
Is there any compelling reason why they can’t privatize the whole agency? It’s not like anyone’s ever going to take legal action against them.