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Is the IRS's Automated Collection System Effective?
By Darrin Mish of Law Offices of Darrin T. Mish, P.A.
Is the IRS's Automated Collection System Effective? The Automated Collection System, or ACS, is a computerized network used by the IRS to communicate with delinquent taxpayers via an Integrated Data Retrieval System, or IDRS. ACS was created in the 1980s to combat a major IRS problem of delinquent taxes and let IRS officers to communicate with taxpayers via phone and/or mail and to facilitate in the collection of taxes. In order to resolve the tax debt, notices, liens , or levies are provided and specific cases are examined by tax examiners through this system. The system has essential data on audit details and taxpayer details. By contacting creditors and collecting court records, corporate files, and bank statements, the ACS supports each item of information saved in it. The system is built with reviews for consistency and validity. The question remains if the ACS is an efficient method to collect taxes. A hearing to determine if private means were better than the ACS was held by congress. ACS is much less costly, as argued by consumer tax advocates opposed to privatization. The cost of ACS against private outsourced collections was compared by the IRS's National Taxpayer Advocate, Nina Olsen. Including commissions of up to 24% per amount collected, the expense of the private collection program is $12 million per year. With only $23 million in collections, net revenues are only at $11 million. By comparison, if $7 million were put into the Automated Collection System, then the revenues could total from $91.8 million to $145 million with no costly commissions. Olsen projects that the privatization of collection is costing the government about $81 million each year. The IRS reasons that it can't afford to employ more employees for debt collection, that's why it outsources. They are, though, taking control of a few cases from private collectors and handling them in-house to determine which method is more effective. The utilization of private collectors, instead of hiring revenue employees puts at risk taxpayer details and is more expensive, attests Colleen Kelley, NTEU, or National Treasury Employees Union, president. Kelley also stresses that IRS employees are the most cost efficient tax collectors in the US, costing only 40 cents for every $100 collected. There is no necessity to use private debt collection with such a resource. The government can recoup revenue from unpaid taxes with the ACS. When compared with the IRS officers' cost efficient job, private debt collection is expensive. Darrin T. Mish is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel's Bar Register of Preeminent Lawyers. His passion is providing IRS help to taxpayers with both individual and payroll tax problems. He also spends a great deal of time traveling the nation providing training to attorneys, CPAs and Enrolled Agents on how to handle their toughest cases with the IRS. If you would like more information about his services please visit http://getirshelp.com. |
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