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TOUGHER TAX-COLLECTION TACTICS TEND TO THRIVE Have you ever had a friend or family member harassed by unsavory bill collection agencies? Well, our lawmakers in Congress have now decided to spend more taxpayer dollars to expand this unseemly industry. On June 28, 2007, the U.S. House of Representatives passed HR 2829 by a vote of 240 to 179. There were 222 Democratic votes and 18 Republican votes in favor of the bill. In Georgia, all votes were strictly along party lines. This bill provides an IRS budget of $11.1 billion for fiscal year (FY) 2008. The IRS’s share of the budget is a 4.7 percent increase over the FY 2007 level and a $52 million increase over the administration's request for FY 2008. It sets aside $7.2 billion for enforcement alone! Kowtowing to the wishes of both the Oval Office and the IRS, our esteemed House of Representatives increased funding of private debt collection agencies as a way to pursue delinquent taxpayers. Rep. Jose Serrano, D-N.Y., chairman of the House Appropriations subcommittee responsible for the IRS budget, sponsored the bill, which originally eliminated funding for private debt collection. He still voted for the revised bill, even though funding was reinstated, but objected to the private tax collection component, terming it "a waste of taxpayer dollars." Rep. Chris Van Hollen, D-Md. supported the bill but asserted that "there is clearly a consensus in the Congress to end the ongoing abuses in the IRS' private tax collection program….. We are determined to end this kind of bounty-hunting activity once for all." The National Treasury Employees Union promised to keep fighting "for the full repeal of IRS authorization to enter into contracts with the most-complained about industry in the country." Before this bill went to the floor, the Bush Administration hinted that it might be vetoed if it exceeds the budget level targeted by the White House. The bill does, in fact, exceed that amount, and so a presidential veto is still on the horizon. Large & Gilbert, P.C. |
