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Private Debt-Collectors Cost IRS $10M More Than They Brought In

By BOB HENNELLY
Posted 6/29/18

A year after several members of Congress blasted the Trump administration’s plan to revive the use of outside contractors to go after delinquent taxpayers, the outsourcing is costing more money than it is bringing in, according to the IRS’s National Taxpayer Advocate, Nina Olson.

“According to the IRS, the (private debt collection) program generated net revenue in Fiscal Year 2018 but has yet to break even,” she wrote. The NTA is an independent IRS watchdog established by Congress in 1996.

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