US House Passes Bill Killing IRS Privatization Program

The House of Representatives Tuesday approved a tax bill containing a provision that would end the Internal Revenue Service’s use of private collection agencies to collect federal taxes.

The House approved H.R. 5719, the Taxpayer Assistance and Simplification Act, by a vote of 238 to 179, after proponents wrote to every House member in support of the measure. Leading the charge was the National Treasury Employees Union, which represents many IRS employees.

“Today’s House vote shows clearly the growing depth and breadth of opposition to the IRS using private tax collectors,” said NTEU President Colleen M. Kelley in a prepared statement.

The bill was approved despite a White House veto threat.
 
The Tax Fairness Coalition, which represents the two firms in the program, CBE Group and Pioneer Credit Recovery, said the measure came within one vote of being referred back to committee before passage, and that similar legislation (HR 3056), passed last year is still sitting in the Senate Finance Committee.

“I have all the confidence this will not be passed. My biggest concern is that the IRS sees all the controversy on the Hill and keeps the program very small or decides not to continue it themselves,” said coalition spokesperson Jeff Trinca.