The program continues to produce revenues returned to the U.S. Department of the Treasury.
10/31/2018 10:30
Revenues through the Internal Revenue Service’s private debt collection program continue to come in, according to data released by the IRS and a news release from U.S. Sen. Chuck Grassley, R-Iowa, a strong supporter of the program.
The IRS recently released data showing that the Private Debt Collection (PDC) program, a public/private partnership that works to bolster the U.S. Treasury, strengthen the effectiveness of the IRS and ensure fairness in the federal tax system, continues to demonstrate that it can more than pay for itself with revenues returned to the Treasury, according to the news release.
“I’m glad this program is helping make the system fairer for those who fulfill their civic responsibility and follow the law,” Grassley said. “The IRS private debt collection program continues to prove its value. The most recent data again shows that revenue returned to the U.S. Treasury exceeds all associated program costs. That’s something we don’t often see here in Washington.”
A provision in the Fixing America’s Surface Transportation (FAST) Act?signed into law by President Obama in December 2015?mandates that the IRS use private collection agencies to collect “inactive tax receivables,” or tax debt the IRS hasn’t collected in the past due to lack of time or resources, ACA International previously reported. The companies in the program collected money on accounts the IRS is no longer actively working on starting in spring 2017.
The IRS also released data reflecting the success of the program in August, including:
- Tax revenue from the program totals $56 million for the U.S. Treasury Department. Total costs of the program are approximately $55 million.
- In the first three quarters of 2018, the program has returned more than $30 million to the department. In addition, the revenues include more than $9 million designated to hire and train compliance personnel.
Related Content from ACA International:
Sen. Grassley States IRS Private Debt Collection Program is Working