[Congressional Record Volume 167, Number 165 (Thursday, September 23, 2021)]
[Senate]
[Page S6640]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                    Private Debt Collection Program

  Mr. President, on one other matter, shorter than I just had, news 
accounts continue to mention plans to increase IRS enforcement funding 
and to impose onerous reporting requirements on sensitive banking 
information to the IRS.
  These proposals raise many concerns, particularly in light of 
questions regarding the ability of the IRS to protect taxpayers' 
information. Even this year, we had a whole bunch of stuff go public of 
private taxpayer information that, by so doing, violated the code to 
protect the privacy of taxpayers.
  However, I want to now discuss an existing IRS program that's already 
collecting hundreds of millions of dollars in unpaid taxes and doing it 
annually. I am referring to the program called the Private Debt 
Collection Program that uses private contractors pursuing tax debts 
that the IRS would otherwise not pursue. This program was enacted as 
part of the infrastructure legislation signed into law 2015.
  Each year since then, annual updates on the program's finances 
document very well the growing success of this program that is done by 
private debt collectors. As of the end of the fiscal year 2020, the 
program had collected nearly $1 billion in unpaid taxes. After 
accounting for the program's cost, it has returned more than $678 
million in net revenue to the Treasury. Of that $678 million, more than 
$458 million was from the fiscal year 2020 alone.
  Every year the program is allowed to function, it brings more and 
more money into the Treasury. At the same time, it generates resources 
the IRS uses to hire additional tax collection personnel. To date, the 
program has enabled IRS to hire many new employees.
  The recent IRS update for the current fiscal year 2021 continues this 
trend. Through June, the Private Debt Collection Program has provided 
more than $700 million in net revenue to the Treasury. In other words, 
in the first 9 months of fiscal year 2021, the program has more than 
doubled the revenue it has returned to the Treasury. The longer this 
program is allowed to work, the more successful it becomes.
  The proposals being put forward by my colleagues across the aisle are 
based on the premise that by spending more money, the IRS will collect 
more money. The Private Debt Collection Program brings in money without 
spending taxpayers' money.
  Despite the obvious benefits of this program, I am very concerned 
that the IRS has suspended providing additional cases to the program 
until the end of September. Commissioner Rettig assured me in responses 
to written questions that the additional cases would be provided on 
September 27.
  I am going to hold Commissioner Rettig to that statement and, in the 
upcoming days, expect to see him keep his word to me.
  All the handwringing over spending more money to increase IRS 
enforcement and information reporting shows the serious issues involved 
in those proposals.
  The IRS Private Debt Collection Program is proven to collect taxes 
already owed, allows the IRS to hire more personnel, and costs nothing 
up front. Anyone serious about closing the tax gap should support and 
encourage the full use of this program, the Private Debt Collection 
Program.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Vermont.
  Mr. SANDERS. I would ask unanimous consent that, at the end of my 
remarks, the scheduled vote take place.
  The PRESIDING OFFICER. Without objection, it is so ordered.