FederalDaily - January 11, 2007

Advocate Calls for End of IRS Private Collections

Echoing previous criticism from employee groups, the national taxpayer advocate urged Congress to halt the IRS program that uses private debt collectors to collect unpaid taxes. In her annual report released Jan. 9, the taxpayer advocate, Nina E. Olson, said the program that uses private collection agencies (PCAs) is one of the agency’s most serious problems, fraught with both economic inefficiency and abuse. For example, the PCAs are using 75 employees to collect on these accounts, but the IRS is using 65 employees to monitor them. “The IRS with its vast resources can do what 75 PCA employees can do,” the report said. “The IRS now acknowledges that it can collect these delinquent accounts more efficiently than PCAs.” In particular, Olsen faulted the IRS for not disclosing certain PCA “psychological techniques” which are prone to abuse. Colleen Kelley, president of the National Treasury Employees Union (NTEU), called on Congress to heed Olson’s recommendation. “Paying debt collectors a bounty of up to 25 percent of the money they collect is a waste of taxpayers’ dollars,” Kelley said, “and exposes taxpayers to the risk of identity theft and overly aggressive collection tactics.” To see more, go to: www.irs.gov/newsroom/article/0,,id=165832,00.html

:: Back to Top ::

Group Releases Congressional Scorecard, Agenda

The advocacy group Federally Employed Women (FEW) on Jan. 9 released its annual congressional scorecard and a legislative agenda for the upcoming year, which includes enactment of a Paid Parental Leave Act (PPLA). FEW is a private membership organization that works to improve the status of women employed by the federal and the District of Columbia governments. On the FEW scorecard, 17 senators scored a perfect 100 percent and another 11 scored 90 percent; in the House, no representative scored 100 percent and only 12 scored 90 percent. Lawmakers were judged on their 2006 votes on issues such as federal job outsourcing and civilian employee pension benefits. Top goals for 2007 include PPLA enactment—which provides six weeks of paid leave for federal workers (both fathers and mothers) following the birth or adoption of a child—and the repeal of the Government Pension Offset Social Security provisions. FEW said it also is working on ways to improve the Equal Employment Opportunity Commission dispute settlement process, said Cecelia Davis, FEW vice president for congressional relations. To see more, go to: www.few.org.

:: Back to Top ::

VA Issues Annual Cost-of-Living Benefits Hike

Disabled veterans and their survivors will see compensation and survivors’ benefits increased as the Department of Veterans Affairs (VA) provides an annual cost-of-living boost starting in the January 2007 checks. The recent increase signed into law by President Bush provides a 3.3 percent increase in disability compensation and survivors’ benefits. Under the veterans disability compensation program, the tax-free payments will generally range from $115 to $2,471 per month depending on the degree of disability. Pension disability benefits will increase by the same percentage, effective on the same date. The maximum annual rate for permanently and totally disabled veterans ranges from $10,929 to $18,234.  To see more, go to: http://www1.va.gov/opa/pressrel/pressrelease.cfm?id=1270.

:: Back to Top ::