IRS selects three firms to participate in delinquent tax effort.

• Author: Laffie, Lesli S.
• Position: FROM THE IRS

To assist the IRS in collecting back taxes, the American Jobs Creation Act of 2004 (AJCA) authorized the Service to hire private firms to collect Federal tax debts. As part of the first phase of this initiative, on March 9, 2006 the IRS awarded contracts to three firms: the CBE Group Inc.; Linebarger Goggan Blair & Sampson, LLP; and Pioneer Credit Recovery, Inc. It expects to assign uncollected liabilities to these firms beginning this summer.

The AJCA includes several stringent limits, ensuring that the private firms will adhere to the same taxpayer protection and privacy rules that IRS employees work under. Also, private firms will not be allowed to subcontract the work.

The IRS has developed its own guidelines for these firms, enumerated in IRS Fact Sheet FS-2006-18. These safeguards include background checks on all firm personnel associated with the project; mandatory initial and ongoing IRS-directed...