IRS Begins Debt Recovery Program with Private Collectors today

USA Today reports that the Internal Revenue Service has begun its tax recovery program with private debt collectors. The IRS states that it is doing all that it can to protect taxpayer rights and privacy. However, one should note that the Fair Debt Collection Practices Act, an act designed to curb such abuses, does NOT apply to governmental agencies. An interesting question that will undoubtedly come up is whether the FDCPA applies to these private collectors who are collecting a debt for their governmental client. The FDCPA excludes from the definition of “Debt Collector” “any officer or employee of the United States or any State to the extent that collecting or attempting to collect any debt is in the performance of his official duties.” Ostensibly, these agencies appear to be governed by the FDCPA since they are not officers or employees of the United States. But it is equally possible that in light of this new federal program that allows for the use of private debt collectors, that the IRS may execute an agreement with the collection agencies wherein the agencies become employees of the IRS. This has not come to light yet. At least, not in the media. It will make for some very interesting litigation.

This entry was posted on Tuesday, September 5th, 2006 and is filed under Collection Law Firms in the News . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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