House Approves Ban on Private Tax Debt Collection

On October 10, 2007, the House passed the Tax Collection Responsibility Bill of 2007 (HR 3056) by a largely party-line vote of 232 to 173. The legislation would bar private debt collectors from collecting tax debts on behalf of the IRS. To pay for the estimated ten-year cost of the legislation of $1.1 billion, the bill includes additional expatriation taxes and expanded interest and penalty provisions. Senate Finance Committee ranking member Grassley expressed opposition to the legislation and doubt that it could pass in the Senate. The Administration also expressed opposition to the legislation, citing concern about loss of the revenue expected to be collected by the private debt collectors.