Private collectors aren’t collecting much tax revenue

The Internal Revenue Service successfully implemented a congressionally mandated program involving private debt collectors in collecting unpaid taxes, but they haven’t yielded very much in terms of revenue – and the program may end up being harmful to taxpayers, according to a recent report.

The report, from the Treasury Inspector general for Tax Administration, looked into the private tax debt collection, or PDC, program that was created by the 2015 FAST Act, which required the IRS to enlist private collection agencies in collecting certain kinds of tax delinquencies (despite the failure of two similar efforts previously). Read More