Comments on IRS proposed use of private debt collection agencies: June 12, 2002.

• Author: Ashby, Robert L.

On June 12, 2002, TEI President Robert L. Ashby sent the following letter to Treasury Secretary Paul O'Neill, concerning the proposed use of private debt collection agencies by the Internal Revenue Service. The letter was drafted under the aegis of the Institute's IRS Administrative Affairs Committee, whose chair is David L. Bernard of Kimberly-Clark Corporation.

I am writing on behalf of Tax Executives Institute to express concern about the Internal Revenue Service's recent testimony before the House Government Reform Subcommittee on Government Efficiency, Financial Management, and Intergovernmental Relations, discussing the proposed use of private debt collection agencies to collect delinquent taxes. Such an action would constitute a radical change in the way federal taxes are collected in this country. TEI believes that the proposal represents poor tax policy, could imperil taxpayer rights, and would likely erode taxpayer confidence in the fairness of the tax system. We strongly recommend that the proposal not be adopted.

Background

Tax Executives Institute was established in 1944 to serve the professional needs of in-house tax practitioners. Today, the Institute has 53 chapters in the United States, Canada, and Europe. Our 5,200 members are accountants, attorneys, and other business professionals who work for the largest 2,800 companies in the United States and Canada; they are responsible for conducting the tax affairs of their companies and ensuring their compliance with the tax laws. Hence, TEI represents the business community as a whole, and our members deal with the tax code in all its complexity, as well as with the Internal Revenue Service, on almost a daily basis. TEI is dedicated to the development and effective implementation of sound tax policy, to promoting the uniform and equitable enforcement of the tax laws, and to reducing the cost and burden of administration and compliance to the benefit of taxpayers and government alike.

Members of TEI are responsible for managing the tax affairs of their companies and must contend daily with the provisions of the tax law relating to the operation of business enterprises. Membership in TEI is not open to individuals employed by law, accounting or other consulting firms. We believe that the diversity and professional training of our members, together with our in-house orientation, enable us to bring a balanced, unique, and practical perspective to the issues raised by the proposed use...