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Definition of Insanity? IRS Banks on Private Collectors a 3rd Time

By BOB HENNELLY
Posted 5/8/17

For the third time in 21 years, the Internal Revenue Service is going to resort to private debt-collectors to pursue billions in back taxes, even though the earlier efforts were judged failures that were not cost-effective.

Last month the IRS green-lighted four private-sector collectors to start going after tax deadbeats. The collection agencies work on a commission basis and pocket 25 percent of whatever they collect. Congress had signed off on the strategy back in 2015.

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