Congress May Hang-Up on Private Debt Collectors

The IRS' use of private debt collectors has raised enough questions about collection techniques and privacy rights to be on the chopping block.

The House plans a vote this week on restricting the IRS's Private Debt Collection Program's funds. Representatives critical of the program since it was approved by Congress in 2004 included only $1 million for private debt collection in the 2008 budget for Treasury Department agencies. The IRS had said it would take more than $7 million to run the program in 2008.

Democrats have also introduced bills in both the House and Senate to revoke the IRS authority to hire private debt collectors.