IRS losing money on targeting debts of low-income earners
“The IRS spent $20 million on private debt collectors who ultimately collected just $6.7 million, according to a report from the Taxpayer Advocate, the agency’s in-house watchdog. The report deems the Internal Revenue Service’s work with private debt collection to be one of the agency’s most serious problems because the debts assigned to private collectors largely targeted lower-income earners who owe federal taxes.”