FederalDaily.com > Taxpayer Advocate Renews Call to Dump IRS Private Collectors

FederalDaily - January 11, 2008

Taxpayer Advocate Renews Call to Dump IRS Private Collectors

In her 2007 annual report to Congress, National Taxpayer Advocate (NTA) Nina Olson has reiterated her prior call for repeal of the IRS private debt collection program. The annual NTA report, which among other issues updates earlier reviews of the debt collection program, said the effort continues to fall “far short of revenue projections.” The report noted that in May 2007, IRS estimated the program would raise gross revenue of $1.5 billion to $2.2 billion over the next 10 years, with a midpoint of that range averaging $185 million per year. But IRS now says it will not reach those targets, according to the report. Annual gross revenue produced by the program—$31 million in FY 2007—is projected to slip in FY 2008, “and is not now projected to rise sharply in future years.” According to the report, the cost of the program has lagged collections, and “IRS cannot project when the program will break even.” Olson also found fault with the program’s transparency. Unlike IRS collection procedures, which are publicly available and subject to review, the private collection firms “have designated comparable information—including calling scripts and training materials—as proprietary,” the report said. In addition, IRS “has declined to insist on a contractual term to make them publicly available,” the report said, hobbling the advocate’s ability to report to Congress on the program. National Treasury Employees Union (NTEU) President Colleen Kelley, who has been leading the charge against private collections, called the report “the most damning evidence yet of the incredible failure of this misguided program.” To see the report, go to: www.irs.gov/advocate/article/0,,id=177301,00.html.

White House to ‘Go Green’ on FY 2009 Budget

Office of Management and Budget Director Jim Nussle announced Jan. 9 that the White House for the first time will not order paper copies of the Fiscal Year 2009 Federal Budget, but instead will post an “E-Budget” online. The E-Budget, to be filed at www.budget.gov on Feb. 4, will be fully searchable and available for downloading, Nussle said in a statement. Touting the “green” aspect of the change, OMB said the move from paper to electronic will save about 20 tons of paper—or about 480 trees. The savings are based on an estimated order of more than 3,000 copies of the predicted four-volume, 2,200-page budget. OMB forecast dollar savings of nearly $1 million annually over the next five years. OMB said paper copies of the FY09 Budget still can be ordered from the Government Printing Office. To see more, go to: www.whitehouse.gov/omb/pubpress/2008/010908_budget.html.

EPA Opposes Effort to Re-Open Ombudsman Office

The Environmental Protection Agency (EPA) is fighting a whistleblower’s attempt to reconstitute the EPA’s National Ombudsman Office (NOO) so it can complete investigations left pending after it was disbanded in 2002, according to documents posted Jan. 8 by Public Employees for Environmental Responsibility (PEER). EPA is opposing a request by Hugh B. Kaufman, former chief investigator for EPA’s NOO from 1997 until its demise, to amend a complaint he filed in 2002, PEER said. According to the group, Kaufman alleges that—in violation of whistleblower protections—NOO and his job were eliminated and he was involuntarily transferred for uncovering embarrassing evidence about EPA misconduct. According to legal documents, one reason EPA cites for disbanding the office was an administration policy to have agencies speak with “one voice.” After an initial investigation, the Department of Labor (DOL) ruled in Kaufman’s favor and found that EPA had illegally removed him from his duties. EPA appealed, and the complaint is now pending before a DOL administrative law judge. To see more, go to: www.peer.org/news/news_id.php?row_id=967