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Government is Turning Your Private Information Over to the Public

IRS Outsources Tax Collection

By Deb Bryant, published Sep 25, 2006
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IRS has recently began handing off collection of delinquent taxes to collection agencies.  This means that your name, address, employment information, phone numbers, credit agency information, and most importantly, your social security number, are being handed off to public collection agencies.  

In an effort to downsize, and believing that this will be more cost effective, IRS handed over collection of certain delinquent accounts, nationwide, to collection agencies.  Would you respond more if you got phone calls from a collection agency, than you would if you had letters from the IRS?   

It has been stated that the collection agencies will not make any money, unless they collect money; they may turn to tactics more agressive than the IRS letters.  Accounts that would be considered, 'high dollar' would not be turned over to collection agencies, as IRS has more leverage in the form of seizure, levies, liens, summons, Offers in Compromise, etc.  These agencies will not have that capacity, but who know what they may try.  

On a worse note, who do you trust more with your private, personal information?  An individual that has 'big brother' watching over them, that have consequences of job termination, fines, and jail terms for disclosing private taxpayer information, or someone that works for $7-$10 per hour making phone calls and sending letters, and has no major repercussion.   Senators raised the question of cost, noting that the bounty to be paid to the private collectors will be eight times higher than the cost of having IRS employees perform the work—24 cents on the dollar versus only three cents per dollar to have the professionals at the IRS do the work.

Identity theft is constantly on the rise, and this initiative only promotes more.  If you have concerns, you should voice your opinion with your State Representive, Congressman, etc.  

Takeaways
  • Don't let the Government give away your identity.
  • High Risk
  • No policing of collection agency personnel for federal debt collection
Did You Know?
President Bush is attempting to downsize most government offices by privatizing and out-sourcing. Why? He has large stakes in both Halliburton and Brown & Root, which perform the overseas civilian jobs, so he makes money. Does he now have a collection agency as well?
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