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The IRS is set to move ahead on a plan to privatize the collection of tax debts, even as a government advisory group joins critics who say the initiative should be scrapped.
The agency will start assigning 40,000 delinquent tax accounts to three collection agencies on Sept. 7. In 2008, the IRS hopes to expand the program, which is authorized by the 2004 American Jobs Creation Act.
The contractors can earn commissions of up to 25 percent of what they collect. IRS officials have said the private collectors can recover more tax dollars than government employees.
Everson has said the outsourcing will proceed unless it is blocked in the Senate, which is currently recessed. “Congress gave us this tool, and I’m going to do everything I can to get every nickel that’s owed to the government,” he said in a statement. “If both chambers act and the authority is revoked, we will immediately stand down.”