IRS to Drop Private Tax Collection

By Stephen Ohlemacher

WASHINGTON -- The Internal Revenue Service is eliminating a program that uses private debt collectors to go after tax delinquents, the agency announced Thursday evening.

The decision came after the IRS reviewed the program and determined that IRS employees could better do the work. The decision, however, was quickly criticized by a key supporter of the program in Congress.

The program is relatively small, bringing in a little more than $80 million since it was started in 2006. But it has caused big political headaches for the IRS. ...