Coinciding with the end of tax season, House lawmakers last month passed a bill that promises to make tax preparation easier, while also repealing the Internal Revenue Service’s often controversial Private Debt Collection Program.By a margin of 238-179, the House approved the Taxpayer Assistance and Simplification Act of 2008, which repeals the outsourcing program. The program had come under heavy fire — particularly from Democrats — for spending $75 million to collect just $35 million for the IRS. Under the agreement, three private firms took a 24 percent cut of the taxes they collected.
Ways and Means Committee Chairman Charles Rangel, D-N.Y., and Oversight Subcommittee Chairman John Lewis, D-Ga., had introduced the bill. “It would once and for all repeal the authority of the IRS to enter into private debt collection contracts,” Lewis said. “This program violates the public trust.”
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