The Private Collection Agency program being operated by the Internal Revenue Service is finally in the black, according to a report issued by the tax agency.
The four collection agencies working on behalf of the IRS have brought in $50 million through the 2018 fiscal year, up to June 14, according to a report that was posted to the website of Sen. Chuck Grassley [R-Iowa], a member of the Senate Finance Committee, which oversees all tax-related matters. After expenses, the program has netted the IRS an additional $20 million, according to the report.
“Contrary to critics’ claims and despite its slow-roll out, the IRS private debt collection program is already demonstrating that it can more than pay for itself with revenues returned to the Treasury,” Grassley said. “The most recent data shows revenue returned to the Treasury exceeds all associated program expenses, including 2016 and 17 set-up expenses. A program that works as it should is a rarity in the federal government.”
The private collection agency program has been blasted by some for targeted lower-income individuals and not providing strong enough results to justify its continued operation. A number of Democrats have proposed legislation to end the program.
Each of the four collection agencies — CBE, ConServe, Performant, and Pioneer Credit – have at least $790 million in receivables owed to the IRS. For the 2018 fiscal year, through June 14, CBE had collected the most — $15.1 million — followed by Pioneer at $12.7 million, ConServe at $11.2 million, and Performant at $10.9 million.
