Congress Moves to Turn Back Taxes Over to Debt Collectors

Congress Moves to Turn Back Taxes Over to Debt Collectors

At the request of Sen. Charles E. Schumer (D-N.Y.), the provision was tucked into a larger bill aimed at renewing an array of expired tax breaks. (Kathy Willens/AP)
At the request of Sen. Charles E. Schumer (D-N.Y.), the provision was tucked into a larger bill aimed at renewing an array of expired tax breaks. (Kathy Willens/AP)

 

(The Washington Post) – The Internal Revenue Service would be required to turn over millions of unpaid tax bills to private debt collectors under a measure before the Senate, reviving a program that has previously led to complaints of harassment and has not saved taxpayers money.

The provision was tucked into a larger bill, aimed at renewing an array of expired tax breaks, at the request of Sen. Charles E. Schumer (D-N.Y.), whose state is home to two of the four private collection agencies that stand to benefit from the proposal.

It requires all “inactive tax receivables” to be assigned to private debt collectors if the IRS cannot locate the person who owes the money or if IRS agents are unable to make contact within a year.

Some taxpayers would be spared the barrage of notices and phone calls, including innocent spouses, military members deployed to combat zones and people “identified as being deceased.”

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