The IRS: The Biggest Growth Client in 2016?

Mike Ginsberg

On Friday, President Obama signed a law requiring the Internal Revenue Service to use private debt collection agencies to recover unpaid tax debt.  Could this become the biggest growth client for collection agencies in 2016 and beyond? Or will it mirror the debacle that the Department of Education has become?

According to the ACA Government Affairs division, the IRS will work with private collection agencies to recover more than $300 billion in consumer tax debt.  This is not the first time the IRS has attempted to do so to recover past-due tax debts; nearly 10 years ago, the IRS launched a tax collection program with collection agencies that recovered nearly $100 million in past dues.  Congress stopped the program in 2009, claiming that it was losing money.

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