S. 335Senate110th Congress (2007-2009)In Committee

A bill to prohibit the Internal Revenue Service from using private debt collection companies, and for other purposes.

Introduced January 18, 2007

Legislative Activity

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2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

January 18, 2007

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SenateIntro Referral

Introduced in Senate

January 18, 2007

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S763-764)

January 18, 2007

SenateIntro Referral

Read twice and referred to the Committee on Finance.

January 18, 2007

Floor Debate

13 members

What members said about S. 335 on the floor

5 Republicans8 Democrats
Ron Wyden
Sen. Ron WydenD-OR · Jan 18, 2007

Mr. President, it has been more than a decade since the U.S. Senate last addressed fixing health care. I do not think it is morally right for the Senate to duck on health care any longer and that is…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Jan 18, 2007

Mr. President, Senators Craig, Kennedy, Martinez, Boxer, Voinovich, and several others are once again introducing legislation that will address the chronic labor shortage in our Nation's agricultural…

Johnny Isakson
Sen. Johnny IsaksonR-GA · Jan 18, 2007

Mr. President, I am pleased to rise today before the Senate. This is an issue this Senate visited 9 months ago in the month of May. Nine months ago, the Senate tackled what I submit is the most…

John Thune
Sen. John ThuneR-SD · Jan 18, 2007

Mr. President, I rise today along with my colleague from Colorado, Senator Salazar, regarding S. 331, the Alternative Energy Refueling Systems Act of 2007. The bill is a very straightforward measure…

Lamar Alexander
Sen. Lamar AlexanderR-TN · Jan 18, 2007

Mr. President, I congratulate the Senator from Georgia. He has described something that for the last several months I have been calling the Isakson principle. I believe the Isakson principle is the…

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Byron L. Dorgan
Sen. Byron L. DorganD-ND · Jan 18, 2007

Mr. President, today I am joined by Senator Murray and 15 of our Senate colleagues in reintroducing legislation to stop the Internal Revenue Service from outsourcing part of its tax collection…

Byron L. Dorgan
Sen. Byron L. DorganD-ND · Jan 18, 2007

Mr. President, today I am joined by Senator Murray and 15 of our Senate colleagues in reintroducing legislation to stop the Internal Revenue Service from outsourcing part of its tax collection…

Edward M. Kennedy
Sen. Edward M. KennedyD-MA · Jan 18, 2007

Mr. President, it's a privilege to join Senators Feinstein and Craig and my other colleagues today as we re-introduce the Agricultural Jobs, Opportunity, Benefits, and Security Act of 2007. I commend…

Larry E. Craig
Sen. Larry E. CraigR-ID · Jan 18, 2007

Mr. President, the last Congress worked long and hard to resolve one of the most contentious issues of our time: immigration. As many of our colleagues know, while a number of border enforcement…

Kent Conrad
Sen. Kent ConradD-ND · Jan 18, 2007

Mr. President, today I am introducing legislation that would take steps to protect access to long-term care hospitals while ensuring that these institutions are admitting the appropriate type of…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Jan 18, 2007

Mr. President, today I join, again, with a bipartisan group of Senators to introduce a bill to reform our immigration laws concerning foreign agricultural workers. America's farmers are calling for a…

Ken Salazar
Sen. Ken SalazarD-CO · Jan 18, 2007

Mr. President, I join my colleague Senator Thune today in introducing S. 331, the Thune/Salazar Alternative Fuel Grant Program. I am proud that Senators Hagel and Conrad are also joining us in this…

Orrin G. Hatch
Sen. Orrin G. HatchR-UT · Jan 18, 2007

Mr. President, I am happy to join my colleagues, Senators Conrad, Wyden, Vitter, Dorgan and Lincoln in introducing legislation to create standards for long-term, acute-care (LTAC) hospitals. My home…

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Richard J. Durbin
Sen. Richard J. DurbinD-IL · Jan 18, 2007

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

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Introduced in SenateIssued January 18, 2007

II

110th CONGRESS

1st Session

S. 335

IN THE SENATE OF THE UNITED STATES

January 18, 2007

Mr. Dorgan (for himself, Mrs. Murray, Ms. Mikulski, Mr. Akaka, Mr. Leahy, Mr. Levin, Mr. Kennedy, Ms. Cantwell, Mr. Rockefeller, Mr. Kerry, Mr. Inouye, Mr. Cardin, Mrs. Boxer, Mr. Lieberman, Mr. Menendez, Mrs. Feinstein, and Mr. Lautenberg) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To prohibit the Internal Revenue Service from using private debt collection companies, and for other purposes.

1.

Prohibition on use by Internal Revenue Service of private debt collectors

(a)

Findings

Congress finds the following:

(1)

The Internal Revenue Service announced plans to outsource part of its tax debt collection responsibilities to private debt collection companies beginning on September 7, 2006.

(2)

The Internal Revenue Service intends to turn over confidential information involving over 2,500,000 taxpayer accounts to 12 private companies for debt collection purposes when its plan is fully implemented.

(3)

Recent evidence continues to suggest that the Internal Revenue Service does not have adequate systems in place to ensure that taxpayer information shared with private debt collection companies is properly secured and that such information will not be accessible to those who would misuse such information.

(4)

During the initial phase of its plan, the Internal Revenue Service has agreed to pay very large commissions of 21 to 24 percent of the amount of tax debt collected by 3 private debt collection companies on cases that the Internal Revenue Service considers relatively simple.

(5)

The Internal Revenue Service failed miserably when it attempted a similar tax debt collection privatization plan in 1996 and found that private debt collectors harassed many taxpayers, violated Federal debt collection laws, and did not properly secure sensitive taxpayer information as required by law.

(6)

The use of Internal Revenue Service employees to collect tax debt would cost only 3 cents for every dollar collected while the use of private debt collectors would cost almost 25 cents for every dollar collected.

(7)

The National Taxpayer Advocate, an independent voice in the Internal Revenue Service for taxpayers, has called for the immediate termination of the private debt collection program calling it an exercise in futility and vastly more expensive than the Internal Revenue Service ever imagined.

(8)

The National Taxpayer Advocate has also warned Congress that private debt collection companies operating under rules of profit maximization could have less incentive to provide important taxpayer rights training to their employees.

(9)

The collection of tax revenue is a core function of the Internal Revenue Service and appropriate Internal Revenue Service staffing should be assigned to this function to achieve debt collection objectives.

(10)

Taxpayers trust the Internal Revenue Service to keep their tax return information confidential and expect that those who collect taxes are not part of a money-making venture with profit motive as the overriding principle.

(11)

The Taxpayer Advocacy Panel, a nationwide advisory group appointed by the Secretary of the Treasury to improve the responsiveness of the Internal Revenue Service to the needs of taxpayers, has called on the Internal Revenue Service to abandon all plans to outsource any taxpayer debts and to restrict collection activities to properly trained and proficient Internal Revenue Service personnel.

(12)

In June 2006, the United States House of Representatives overwhelmingly passed a fiscal year 2007 spending bill funding the Internal Revenue Service that included language prohibiting the Internal Revenue Service from using any of such funds for its private tax debt collection initiative.

(13)

A year-long Government Accountability Office examination of the private debt collection program issued in September 2006 found that, like the 1996 pilot, the program may actually lose money by the scheduled conclusion of its initial phase in December 2007.

(b)

Prohibition on use of private debt collectors

Notwithstanding section 6306 of the Internal Revenue Code of 1986, the Internal Revenue Service shall suspend immediately and indefinitely the use of private debt collection companies, and no funds made available to the Internal Revenue Service for fiscal year 2007 and in any subsequent fiscal years shall be used to enter into, renew, extend, administer, implement, enforce, or provide oversight of any qualified tax collection contract (as defined in section 6306(b) of such Code).