National Taxpayer Advocate Vows to Closely Monitor IRS Private Debt Collection

by Patrick Lunsford CollectionIndustry.com

National Taxpayer Advocate Nina E. Olson today issued a report to Congress that spells out the priorities for Office of the Taxpayer Advocate for the coming year. Included in the report was discussion of the IRS? private debt collection initiative.

Olson noted her previous opposition to the initiative due to the potential risk to taxpayer privacy and her confidence in the federal tax system. Ironically, in the report, Olson states that ?the IRS is under significant pressure…to reduce the tax gap? and lauds the IRS for its efforts to do so. Reducing the tax gap is one of the main arguments for proceeding with the private debt collection initiative.

Olson said that her office will closely monitor the collection project in fiscal year 2007 ?with respect to both specific cases and systemic issues.? Olson said that her office would immediately report any concerns to the IRS and Congress.

The Advocate also noted that her office would attempt to track the amount of ?re-work? private collectors create for IRS employees to get an accurate measure of the true ROI of the program.

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