Opens in a new tab

We like bill collectors better

March 21, 2007

First, let me say the "we" in the headline is just the general pronoun; the "royal we," if you will.

Neither I nor anyone I know likes bill collectors better than anyone or anything else.

Markeverson_irs_2
But IRS Commissioner Mark Everson told a Congressional panel on Tuesday that some IRS customers, aka taxpayers, do feel that way.

Specifically, the commish told the House Ways and Means Subcommittee on Oversight that studies indicate when it comes to bringing in unpaid tax bills, customer satisfaction with the efficiency of the private collection agencies is ranked as "good" when compared to satisfaction with collection by the IRS’s own employees.

Talk about a morale buster!

I’m sure you all recall that last September, three private debt collection agencies, known as PCAs in IRS acronymese, started going after the unpaid tax bills run up by about 12,000 people. As of a month ago, according to Everson, these agencies had collected $14.47 million.

Despite the dollars brought in, many in Congress are still not happy with the outsourcing program and the 25 percent commission that the firms receive. Everson once again admitted that "the IRS could do this work cheaper."

But he said given current personnel limitations, the IRS lacks the resources to pursue the geographically dispersed cases that are farmed out to the PCAs. He expects that the PCA partnership will ultimately take care of more than 2 million delinquent tax cases.

And then there were two: The PCA program itself, however, is not without personnel issues.

When the three collection agency contracts came up for renewal earlier this month, the Austin-based firm was dropped. The official word is that it was at the mutual agreement of both sides. Everson said his agency believes it can get the job done with just the two remaining collection firms.

And even though the debt collectors reportedly are getting higher marks than IRS employees, Everson acknowledged that there have been complaints. Everson characterized them as "limited number," around several dozen. But the IRS does consider some of the complaints serious and Everson assured lawmakers that his agency is "following up on each of them."

The IRS better take care of those unhappy customers, because it looks like the agency still has to deal with some unhappy lawmakers, too.

Oversight subcommittee member Bill Pascrell, Jr. (D-N.J.) made it clear that he was not convinced by Everson’s testimony and that he wants all tax collection activity restricted to IRS staff.

He’s not alone. IRS Taxpayer Advocate Nina Olson has made clear her disapproval of the program. Both the House and Senate have introduced  measures that would put an end to all outside collection efforts.

Similar anti-PCA legislation was introduced last year, but didn’t make it into law before the 109th Congress adjourned. But with the new 110th Congress in town, the effort might get more traction this time.

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
confused office worker
8 workplace benefits questions to ask this enrollment season

October 26, 2026

Millions of U.S. workers are now deciding what workplace benefits, some of which also offer…

Read More
TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • I hope that the collectors are following the Fair Debt Collections Practices Act – whether IRS employees or private agencies. Laws should not be allowed to be discarded just because the government is involved.

Leave your comment