ACA International Statement in Support of IRS Private Collection Contracts

Rozanne Andersen, General Counsel and Senior Vice President Legal and Government Affairs for ACA International, the Association of Credit and Collection Professionals, today issued the following statement regarding the Internal Revenue Service (IRS) announcement of contracts with private collection agencies:

“Members of Congress know that their taxpaying constituents deserve a tax system that above-all is fair. It is not fair when only 25 percent of tax delinquents who neglect to file a tax return get a call or letter from the IRS. This means that approximately 7.4 million people who may owe federal income taxes never hear from the IRS about it.

Taxpayers are treated most fairly when non-taxpayers are encouraged to pay their fair share. This IRS partnership with private collection agencies will help our voluntary tax system work more fairly and efficiently, by providing the federal government with effective new resources to collect delinquent taxes.

Private collection agencies are rightly proud of our past service to the U.S. government. Congress and the IRS have placed their trust in our industry and we will continue to earn that trust. Taxpayers will be dealt with in a straightforward and courteous manner and will retain all the rights established by the Internal Revenue Code, including access to the IRS Taxpayer Advocate Service.

We are committed to the highest standards of consumer data protection and professional conduct. Private collection agencies will follow all IRS rules as well as the Fair Debt Collection Practices Act, Fair Credit Reporting Act and all other applicable federal and state collection and privacy regulations.

Based on Bureau of Labor Statistics data, the private debt collection industry was responsible for 426,700 jobs with a payroll of $15 billion in 2005. Our industry has played a vital role in our economy by recovering past-due accounts for U.S. companies and government agencies at the local, state and federal levels.”