The IRS has announced that after an extensive review of its private debt collection program it has decided forgo renewing contracts with the two main private debt collection companies, allowing the contracts to expire.
"I believe this work is best done by IRS employees, and I believe we have strong support from the administration and the Congress for increased IRS enforcement resources going forward," said IRS commissioner Doug Shulman.
The IRS determined that its own employees have more flexibility handling cases, especially given that the number of taxpayers unable to pay their debts is increasing.
The study concludes that IRS collection is more cost effective than the contractors when working similar inventories.
The National Treasury Employees Union has been an outspoken critic of the program and hailed the agency’s decision as a victory. "This result, a long time coming in the face of growing opposition to the program, is not only a good decision by the IRS, it is the right decision," said NTEU president Colleen Kelley.