Private Tax Collection Benefits Public

There may be good news for those who think they are paying more than their fair share of federal taxes. Following the example of several local and state agencies, the Internal Revenue Service (IRS) has begun to partner with the private sector to recover delinquent income taxes. So far, the IRS Private Debt Collection Program is exceeding expectations, collecting more than $24 million in its first year. Once fully implemented, it's expected to collect $2.2 billion over 10 years.

Some critics in Congress, however, have called for an end to the program before it's even had a chance to get off the ground.

The program's opponents have ignored the benefits it brings to the average American taxpayer. Taxpayers are being treated professionally, information security has proven to be on the same level if not superior to that of federal agencies, and the IRS is getting much-needed help to close the tax gap.

An independent third party measured the customer-service ratings of the program and found it to be outstanding. The two private companies participating in this public-private partnership also received exemplary customer-service ratings, scoring at or above 96 percent for taxpayer satisfaction, professionalism, accuracy and timeliness.

With regard to taxpayer privacy, the most sensitive and detailed information never leaves the IRS. In fact, private collection agencies working with the IRS are only given access to basic taxpayer information and the amount of delinquent tax owed-and only for those cases where the taxpayer has already admitted owing back taxes.

Additionally, a report by the Treasury Inspector General for Tax Administration found that a strong system of computer and physical security controls was in place.

Without a program to help close the tax gap, Americans can expect to see more of their hard-earned money heading back to the feds. It's something to think about as Congress votes on restricting or repealing the IRS Private Debt Collection program this fall. Taxpayers can voice support of the program by calling or writing Congress.

By: Wendy Mitchell

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To let your representative know your opinion on this or other issues, visit www.congress.org. Dan Drummond is spokesperson of the Tax Fairness Coalition.