IRS Paid $20 Million to Collect $6.7 Million in Tax Debts

IRS Paid $20 Million to Collect $6.7 Million in Tax Debts

The IRS provides second chances to get your tax return right with Form 1040X.
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By The Fiscal Times Staff

Congress passed a law in 2015 requiring the IRS to use private debt collection agencies to pursue “inactive tax receivables,” but the financial results are not encouraging so far, according to a new taxpayer advocate report out Wednesday.

In fiscal year 2017, the IRS received $6.7 million from taxpayers whose debts were assigned to private collection agencies, but the agencies were paid $20 million – “three times the amount collected,” the report helpfully points out.

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