Back in 2006, the Internal Revenue Service subcontracted out collections to three different debt collection agencies. After a study found that the IRS could more cheaply do collections in-house, the agency did so. According to debt collection industry publication insideARM, Senator Chuck Grassley (R-IA) sicced the Government Accountability Office on the IRS, and has been a vocal critic of the IRS’ decision to bring collections in-house. It seems like a rousing game of political football, since the CBE Group, one of the debt collection agencies used by the IRS, is headquartered in Grassley’s state. The IRS isn’t backing down, though; there are no plans to reinstate third-party debt collectors to collect back taxes.
StopCollector Blog Authors
Sergei Lemberg
Sergei Lemberg is the principal at Lemberg & Associates, a law firm that defends consumer rights in the areas of fair debt collection law, fair credit law, lemon law, among others. He is regularly labeled by the debt collection industry as one of the “most active consumer attorneys” in the U.S.
Sally Smith
Sally Smith is the former editor-in-chief of several consumer magazines, and has written extensively on issues relating to finance, public policy, and other topics of interest to consumers.
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