Senate could slash IRS debt collection program

After House lawmakers vetting the budget for the upcoming fiscal year included funding to the controversial IRS private debt collection program - citing concerns that cutting funding would strip the Treasury of its ability to raise revenue - a committee of their Senate counterparts approved an

The Senate Appropriations Committee moved forward on a spending package, H.R. 2928, that would cut the private debt collection program's budget from $250 million to $1 million. The move comes after some lawmakers and consumer advocates said the program was inefficient and claims of abusive practices were raised about some of the debt collectors.

Despite support for the program by Senate Finance Committee ranking member Charles Grassley, the appropriations committee voted 15-14 to cut funding.

Meanwhile, the House will consider a separate bill that would repeal the authority of the IRS to use private debt collectors altogether. That bill, H.R. 695, is co-sponsored by 21 of the 24 Democrats on the House Ways and Means Committee.

Credit: Lawyers USA Staff