IRS takes first step toward hiring private tax collectors

The IRS posted a request for information today for the initial phase of its plan to use private agencies to help collect delinquent federal taxes. The IRS will begin a limited implementation of the program this summer, with full rollout expected in fiscal year 2007.

The program is designed to reduce a significant and growing volume of uncollected taxes and let the IRS focus on more difficult cases, tax agency said in its posting.

Private collectors will not replace internal IRS collectors but will handle cases that do not require enforcement action or a judgment call in resolving tax liabilities, IRS said in its posting. The use of private collectors, which Congress approved last year, is the first step in IRS' plan for a filing and payment compliance system.

IRS is uncertain of the number of collection agencies it will need for the first phase. Vendors who receive an award in the limited implementation phase will not have a placement advantage when the program is fully implemented, the IRS said. The agency will use the General Services Administration's Financial & Business Solutions Schedule to identify vendors and to make awards for the full implementation phase of the program.

About the Author

Mary Mosquera is a reporter for Federal Computer Week.

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