Built on the foundation of the Tax Management Portfolios™, Bloomberg BNA Tax & Accounting is a comprehensive tax research solution designed by tax practitioners for tax practitioners.
The IRS, in a news release (IR-2009-19) issued March 5, announced that after it had conducted an extensive review of the private debt collection program, including the cost effectiveness of the effort, it will not renew its contracts with two private debt collection agencies.
The IRS determined that the work is best done by IRS employees who have more flexibility handling cases, which is particularly important with many taxpayers currently facing economic hardship. The current one-year contracts expired March 6. “After a thorough review of this program, I have decided not to renew the contracts,” IRS Commissioner Doug Shulman said. “I believe this work is best done by IRS employees, and I believe we have strong support from the Administration and the Congress for increased IRS enforcement resources going forward.” Shulman also noted that the IRS anticipates hiring over 1,000 new collection personnel in FY 2009.
The study, supported by an independent review, showed that it is reasonable to conclude that when working similar inventory, IRS collection is more cost effective than the contractors. IRS employees have a range of options available to them in attempting to resolve difficult collection cases that, by law, the private contractors do not have.
“In these challenging economic times, I have asked all IRS employees to go the extra mile to help financially distressed taxpayers,” Shulman said. “IRS employees have more options available to them to resolve difficult collection cases.” Shulman also said that the decision was in no way based on concerns over the performance of the two contractors affected, who performed according to the terms of the contract throughout.
Sen. Charles Grassley (R-Iowa) said March 5, “The administration has decided that after spending nearly a trillion dollars in the stimulus bill to keep people working across the country, they are going to cut a program that provides jobs to hundreds of people during the middle of a recession, including 60 in Iowa,” Grassley said in a statement.
Grassley has argued that the collection program should be given a chance to work.
Grassley March 4 urged the Senate, the Treasury Department, and IRS to save the program despite efforts by the Senate Democratic leadership to cut off debate and allow no amendments to a $410 billion omnibus spending bill.
Grassley, ranking member of the Senate Finance Committee, had filed an amendment that would have stricken a provision in the House-passed bill (H.R. 1105) to prohibit IRS from using any 2009 appropriations to fund the private debt collection program.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)