Tax Fairness Coalition Responds to IRS Debt Collection Decision

WASHINGTON, D.C. — The Tax Fairness Coalition, a group representing private collection agencies — including the two companies working on the IRS Private Debt Collection program — Friday issued the following statement in response to the IRS’ decision to end the private debt collection program:

“It’s unfortunate that partisan politics and heavy handed special interest lobbying has killed a successful, common sense and well run public-private partnership.

It appears that Treasury Secretary Geithner and the Administration based their decision more on ideology than good policy.

“The IRS Private Debt Collection Program returned more than $80 million to the U.S. Treasury that—regardless of additional funding or employees—would otherwise never be collected by the IRS. We are proud of our employees who continually demonstrated the highest levels of professionalism and respect for taxpayer rights and protection of taxpayer information.

“The issue here has never been whether the IRS or private debt collection agencies can do this work more efficiently or better, it’s whether these delinquent taxes are collected at all. Plain and simple, without this program, the IRS will not collect these taxes. Billions of dollars will simply roll off the books, adding to our nation’s ever growing tax gap and leaving the American taxpayer footing the bill.”

“Today’s decision also puts quality jobs in local communities at risk and eliminates the potential for the thousands of additional private sector jobs that would have been created nationwide if the program was fully implemented. Sadly, the American taxpayer will never realize the true potential of this program and in the current economic environment, that’s something we simply cannot afford.

“Tax Fairness Coalition stands ready to bring all of our resources to the table to work with the Administration should they decide to revisit their decision on this important initiative.”

About the Tax Fairness Coalition
The Tax Fairness Coalition represents a group of private collection agencies committed to helping the IRS close the tax gap, and returning those funds to the U.S. Treasury so they can pay for critical investments in areas such as education and health care. The Coalition believes the collection of overdue taxes is about fundamental fairness to the vast majority of Americans who pay their taxes on time and as required by law, as much as it is about dollars and cents.