Jim Ramstad: “Preventing the IRS from using the professional services of private collection agencies to help collect past-due income…”

“Preventing the IRS from using the professional services of private collection agencies to help collect past-due income taxes is bad policy for taxpayers, and it is bad for IRS collection efforts. It is fundamentally unfair, Mr. Chairman, to people who pay their taxes for those who do not pay their taxes, the deadbeats, to get off scot-free. And right now, we are losing millions and millions of dollars because of deadbeat taxpayers. In fact, the backlog for the IRS is at $280 billion; that is billion with a ``b'' and growing every year. The concerns raised by my friend and colleague can be dispelled by objective study of the IRS proposal. The Subcommittee on Oversight of the Committee on Ways and Means has examined the issue extensively, and we have solid evidence of the success of private collection agencies in collecting other debts for the Federal Government and the more than 40 States that also use them to help collect State income taxes. First, the security and privacy of sensitive taxpayer information is absolutely essential.”