U.S. House Approves IRS Private Collections Program

The private debt collection program at the Internal Revenue Service just may live for another year after the U.S. House of Representatives late Monday approved a government appropriations bill for fiscal year 2008 that did not kill or greatly reduce funding for the program.

Supporters in the House successfully fought back opponents’ attempt last month to kill the program. The appropriations bill passed yesterday by a vote of 253 to 154 and goes to the Senate for approval. The Senate is also working on its own appropriations bill that allows for the IRS program to continue.

The House bill contains a clause that may impact spending on the IRS program, setting aside at least $7.3 million above fiscal year 2007 levels to pay for an automated collection system designed to track and route calls to and from the IRS and tax payers late on their bills.

A final approriations bill must be approved by both the House and Senate.