IRS moves ahead on debt-collection plan

[Dover]

By DAN CATERINICCHIA, AP Business Writer
Tue Aug 22, 12:54 PM ET



WASHINGTON - As the Internal Revenue Service prepares to implement a new program that sends private debt collection agencies after delinquent taxpayers, critics — including several lawmakers and the employee union at the Treasury Department — are gearing up to protest it.

Opponents say that the IRS will pay private debt collectors more to do what government-paid employees could do and that the agency is not doing enough to let the public know about the new program, set to launch in early September.

"I think taxpayers will be very offended and appalled that their tax information is being handed over to" non-IRS tax agents, said National Treasury Employees Union President Colleen Kelley, adding that she has "no confidence at all" in the agency's ability to make sure the private firms are not overstepping their bounds.

The IRS acknowledges the plan will cost more than hiring additional agents to do the same work, but it points out that Congress authorized the use of such firms back in 2004. The plan is being implemented now because the IRS has funds allocated for such a program and doesn't believe it can get budget authorization to hire additional agents at a time when Congress is cutting government spending to help reduce the federal budget deficit. The agency also says strict security policies are in place with the new program.

"It is a sound, balanced program that respects taxpayers' rights and taxpayer privacy," said IRS spokesman Terry Lemons.

The agency chose three companies in March — CBE Group Inc., in Waterloo, Iowa, Linebarger Goggan Blair & Sampson LLP in Austin, Texas, and Pioneer Credit Recovery Inc., in Arcade, N.Y., — from 33 bidders. Pioneer Credit is a subsidiary of SLM Corp., commonly known as Sallie Mae. The IRS plans to expand the program to as many as 10 companies in 2008 with a goal of collecting $1.4 billion over 10 years, Lemons said.

The private agencies will get 22 to 24 percent of the tax money they collect, although Lemons said he didn't have an estimate for how much they might collect the first year...cont'd

http://news.yahoo.com/s/ap/20060822/ap_on_go_ot/irs_debt_collection&printer=1

[IChing]

1. Folks you need to call your representatives about this

Why, that one of the firms, Linebarger Goggan Blair & Sampson LLP, has been caught with its hands in the cookie jar on more than one occasion:

A former Linebarger partner was convicted in a 2002 bribery scheme involving payments to two San Antonio city councilmen who voted to approve a collection contract with the law firm.

In 2004, Linebarger settled a lawsuit in which a competitor alleged that the law firm offered illegal gifts and bribes, and rigged bids to win collection contracts from several local governments.

A collection contract that the city of New Orleans awarded to Linebarger and a Louisiana partner organization in 1998 "has been the subject of an FBI investigation."

[Book Lover]

2. "The private agencies will get 22 to 24 percent of the tax money ...

they collect..."

That is stealing money from the federal Treasury! If the feds can afford to throw away that much revenue, then they don't need to come after my piddly tax burden.

[BadGimp]

3. This is a Grover Norquist Wet Dream

I am sickened to no end by this.

Right after killing the jobs of collectors targeting high end cheats, they pull this shit.

[Supersedeas]

4. wonder who will get these juicy crony contracts??? hmmmmm.....

[NashVegas]

5. "but it points out that Congress authorized the use of such firms"

What a wonderful tool to use against Repubs who are now trying to distance themselves from Bush, on the topic of Iraq.

[Dover]

11. Better find out first WHICH members of Congress endorsed it.

Might be that some Dems are also behind this.

[Javaman]

6. I envision the opening scene from the movie, "Brazil" as to how

our future will look in a few years.

[newspeak]

7. yeah, I've been thinking about that movie a lot lately

I have it, but don't have the stomach to watch it again. With what's going on, it's just too damn depressing.

[htuttle]

8. "We're all in this together, kid"

[Javaman]

12. If one Nov. 8th, we find out that another election was stolen...

I see a lot of De Niro like characters being created.

[donkeyotay]

9. Another GOP failure. More crony corruption. More privatized exploitation

of the people they supposedly represent. Another example of the dismal failure of GOP philosophy supposedly based on saving taxes and preserving our freedom.

The IRS acknowledges the plan will cost more than hiring additional agents to do the same work, but it points out that Congress authorized the use of such firms back in 2004.

Just like Iraq. Just like Katrina. Privatization is just another word for corruption.

[depakid]

10. More cronyism an abuse at work

I'm sure this will turn out to be very popular (of course, the corporate media will conceal and cover it up- just like they do every other oprofoundly unpopular policy the far right pushes through).