IRS Privatization Program Lives Until 2008

More news is emerging from the budget deal reached over the weekend, and this tidbit is not good. The omnibus appropriations bills does not contain any language that would kill or restrict the private tax collection program run by the IRS. The version of the Financial Services Appropriations bill included language that would have stopped the IRS from outsourcing tax collection that was removed from the omnibus. Despite overwhelming evidence that the program is wasteful and dangerous, and strong support for ending the program, it appears the companies receiving contracts to keep one-quarter of the money they collect have too many political connections. It is possible Sen. Chuck Grassley's (R-IA) key voice and strong support of the program kept language out of the omnibus bill. I suppose it is back to the drawing board for public protection and privacy advocates - as well as anyone with the least bit of common sense - who strongly opposed the program. If you are someone who owes money to the IRS, watch out! With this program in place, who knows who will come knocking on your door.
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