The House of Representatives on Wednesday voted to block plans that would allow the Internal Revenue Service to use private collection agencies to recover tax debts.
In a unanimous voice vote, the House adopted a measure by Rep. Shelley Moore Capito, (R-W.Va) preventing the Treasury from using funds to “plan, enter into, implement, or provide oversight of contracts" for any private collection practices.
The action was welcomed by Colleen Kelley, president of the National Treasury Employees Union, who voiced fears that the move would endanger taxpayer privacy.
Kelley pointed to a “disastrous” 1996 IRS pilot program using private debt collection companies that was “so flawed it led to the cancellation of a further proposed program in 1997."
The measure was adopted as an amendment to the $89 billion Treasury and Transportation Departments' funding bill for fiscal 2005. The House is due to give its final approval of this bill next week.
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