IRS Will Miss March 4 Deadline For Contracting With Private Debt Collectors

Yesterday Internal Revenue Service Commissioner John Koskinen testified before the Senate Committee on Finance. Among many topics addressed in this hearing was the recently passed FAST Act provision to reinstate the use of private debt collectors within the IRS.

In early December 2015 President Obama signed into law the Fixing America’s Surface Transportation Act (FAST Act). This Act included a provision requiring the IRS to use private debt collection companies. At that time, insideARM posted an overview of the Act’s provisions, and the history of past IRS private debt collection initiatives.

Many in Congress, the National Treasury Employee’s Union, and others, oppose this initiative but nonetheless, the Act requires that the IRS begins entering into contracts within three months of the date of the Act’s enactment, or March 4, 2016 (although there is no specific timeframe required for the placement of accounts, except “soon thereafter”). During Commissioner Koskinen’s testimony yesterday, he noted that his Agency would miss that deadline.

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