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Privatized Tax Debt Collection Again Sparks Firestorm

June 27, 2017

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Some taxpayers are receiving advice to borrow against their homes or retirement savings to pay off their tax debts under a new program that has outsourced that collection to private companies.

The Internal Revenue Service has contracted with four debt collectors in the congressionally mandated privatization program, one of which has engaged in the aggressive tactics. The controversial methods deployed at the nascent program — first reported by The New York Times — caused alarm bells to sound at consumer and employee advocacy groups, as well as among Democratic lawmakers, despite assurances from the IRS that there is no cause for concern.

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