IRS Awards First Debt Collection Contracts

[NVMojo]

March 9, 2006

WASHINGTON (AP) - The nation's tax collectors announced Thursday that three companies will help collect unpaid tax debts.

The firms, chosen from 33 applicants, will help the Internal Revenue Service collect money from taxpayers who agree they owe taxes but haven't paid. As much as $7.7 billion in unpaid taxes could be eligible for assignment to a private debt collector, debts the IRS does not have the resources to collect itself.

Congress in 2004 gave the IRS authority to contract debt collection to private companies. The tax agency plans to expand the limited trial, which will be under way this summer, to as many as 10 companies in 2008.

IRS Commissioner Mark Everson said many states use private companies to collect unpaid taxes. "Redirecting relatively simple cases to private firms will permit the IRS to focus its existing collection and enforcement personnel on more complex tax issues," he said.

snip...

The firms are The CBE Group Inc., in Waterloo, Iowa; Linebarger Goggan Blair & Sampson LLP in Austin, Texas; and Pioneer Credit Recovery Inc. in Arcade, N.Y.

more...

http://www.lasvegassun.com/sunbin/stories/bw-other/2006/mar/09/030909897.html

Linebarger gets around:

Let's put the events about the tax colletion bill into a timeline. Ben Cunningham of Tennessee Tax Revolt asked for someone to follow the "chain of events," and I'm happy to oblige.


February 24, 2003 - SB 1753 filed by Sen. Bill Clabough (companion bill HB 1808 intro'd by Rep. Randy Rinks)

March 25, 2003 - Wilder addresses the Senate Finance, Ways and Means Committee to answer questions they have on SB 1753

April 15, 2003 - Sen. Clabough tells Finance Committee that SB 1753 "'is the bill that Gov. Wilder brought to me on his behalf.'"

April 28, 2003 - Bill passed

May 12, 2003 - Bill signed into law by Governor Bredesen

August 13, 2003 - The first of four meetings arranged by Wilder between Linebarger, Goggan, Blair & Sampson (a Texas firm seeking tax-collection contracts) and "top state officials"

December 18, 2003 - Wilder met with City of Chattanooga officials and representatives of Linebarger Goggan - Wilder's role in the meeting described as "lobbyist"

April 4, 2005 - the latest of four meetings arranged by Wilder between Linebarger Goggan and "top state officials"

October 23, 2005 - Chattanooga Times Free Press reports on Wilder's Chattanooga lobbying visit

October 31, 2005 - numerous media outlets report that Wilder paid back a $183.54 charge to the state for taking his private plane on the Chattanooga trip, after it was publicized

November 6, 2005 - Chattanooga Times Free Press reports on Wilder's involvement with SB 1753 and clarifies that he was reimbursed by Linebarger Goggan for travel expenses and legal advice

Sources: Andy Sher's (with Mike Weber) published news accounts; Tennessee

more...

http://civicforum.chattablogs.com/archives/2005_11.html

[saigon68]

1. Mercenaries and Bounty Hunters

Nice---</sarcasm>

[Skink]

3. Any monies will then be routed offshore.

[MadMaddie]

2. There is something Fundamentally wrong with this...

They are going to pay taxpayer dollars to companies to collect our taxes...We are going to be harrassed, strong armed and bullied by companies which the governmet will have no oversight!! They will eventually outsource the IRS jobs themselves.

There must be an investigation into these companies and their links to the Republican party!! They will go after the poor and the middle class....

[quiet.american]

4. So, student loan strong-arm tactics come to the IRS.

Yes, we should all make every effort to pay taxes due, but when I think of how multi-billion corporations have the government's blessing to pay very little or ZERO taxes, it makes my blood boil.

[newscott]

6. Check it out some time

Most people who are being harrassed by the IRS for back taxes owe only a couple thousand dollars.

Makes sense. Keep the little guy terrified all the time.

[quiet.american]

9. I think you're absolutely right. n/t

[AndyA]

5. The money will be collected and immediately sent overseas to that huge

money vacuum known as Iraq.

Maybe these companies could outsource all their jobs to India, so when they call no one will be able to understand what they're saying.

[NVMojo]

7. well, CBE is contributor to a Repuke in the 2006 RACE: IOWA DISTRICT 1

http://www.opensecrets.org/races/contrib.asp?ID=IA01&cycle=2006&special=N

[MadMaddie]

8. And there's the connection.....Thanks for looking that up!!

[NVMojo]

12. check out this little tidbit on Linebarger of Austin! Look at the names!

In New Orleans, the firm joined with a company made up of former Mayor Marc Morial's supporters to win a lucrative contract with the city. The agreement allows Linebarger to split 30 percent of any delinquent accounts it collects, a rate among the highest in the nation for property taxes.

That contract is now the focus of an FBI investigation.

Heard and his law partners have hired public officials and the politically connected to help win contracts.

"We often engage local consultants or attorneys to assist us in a public relations campaign to let people know who we are and how well we do our work," partner Dale Linebarger said.

Over the years, the firm has employed former tax collectors for government entities; a former county judge in Dallas; former Texas Gov. Mark White; former U.S. Rep. Craig Washington Jr., D-Houston; current and past state Reps. Debra Danburg, Senfronia Thompson and Larry Evans of Houston; state Sen. J.E. "Buster" Brown, R-Lake Jackson; former state Rep. Orlando Garcia, now a federal judge; the wife of former U.S. Rep. Albert Bustamante, D-San Antonio; state Sen. Jeff Wentworth, R-San Antonio; and a Canadian lobbyist who was a fund-raiser for Mike Harris, former premier of Ontario.
...

Dale Linebarger, one of the law partners who joined forces with Heard in 1998, acknowledged the firm has tried to build political networks - as would any other business, he said.

"All things being equal, people frequently are going to hire their friends over their enemies," Linebarger said.

But he rejected suggestions that campaign contributions and politicking are inappropriate.

more...

http://www.burntorangereport.com/archives/2004/06/tin_foil_hat_ch.html

[NVMojo]

13. Linebarger firm a supporter of GOPUSA! BLECH!!!

As with all things at GOPUSA, we were able to put this conference together by assembling a great team. First, we needed financial and promotional help, and for that, I am deeply grateful to our sponsors. In particular, I'd like to thank:

Americans for Tax Reform
The Heritage Foundation
Americans for Fair Taxation
Townhall.com
60 Plus Association
Linebarger, Goggan, Blair & Sampson
CampaignSecrets.com
Citizen Outreach
ConservativePetitions.com

http://www.gopusa.com/commentary/bobby/2003/bobby_1103.shtml

This story was posted on DKOS in Feb. 05

http://www.dailykos.com/comments/2005/2/21/205347/897/156?mode=alone;showrate=1#156

[NYC]

14. That contract is now the focus of an FBI investigation.

What sense does this make? Why do this?

...

In New Orleans, the firm joined with a company made up of former Mayor Marc Morial's supporters to win a lucrative contract with the city. The agreement allows Linebarger to split 30 percent of any delinquent accounts it collects, a rate among the highest in the nation for property taxes.

That contract is now the focus of an FBI investigation...

[apnu]

10. what I don't get is...

... how the IRS doesn't have the resources to get the taxes, but does have the resources to hire outside thugs. If its such a big deal to get paid on these taxes, why doesn't Congress give the IRS the resources?!?!

I know, I know, it a rhetorical question. The GOP just wants to privatize yet another portion of our government. Somedays I feel like slapping Grover Norquist in the face for being such a jackass.

[napi21]

11. This is total crap! How much authority are they going to give them?

My guess is NONE! Right now, if you can demonstrate a true hardship case, you can work out a delal with the IRS. Pay so much and they'll forgive the rest.

Have you ever dealt with a debt collector? HA! They have NO authority at all except to collect that $$!

PLUS, I bet it's going to be more expensive for the IRS to use private agencies than it is to just pay agents.

WOW, I think I've posted this statement several times...just today...but:

WHAT'S WRONG WITH THESE PEOPLE???????

[cmdrzog]

15. what makes you think they are people;

they lack empathy, compassion, a sense of humor, humility and sanity; all the while living only to accumulate and consume. I smell borg.

[customerserviceguy]

18. Sorry

It doesn't work that way. You can make an offer in compromise with the IRS, but good luck getting them to accept it. I had to hold them off for three years until I filed bankruptcy on some other matters relating to a child custody case, and I named them along with the attorneys and assorted scum that I had to get off my ass.

Personally, I don't see a huge amount of difference between a collection thug, and an IRS thug. I've dealt with both.

[Tempest]

16. How much of the work will be outsourced overseas?

It might be worth the time to find out if the companies have outsourcing contracts.

[Mnemosyne]

17. This sounds almost like a bid process. Does any agency

still take bids anymore? Or are they all no bid and this is just bull to look fair?

Sorry, I've become skeptical of anything any agency does. Will they give preference to faith-based collection agencies ala DHS?

It just gets better all the time. :(

[NVMojo]

19. our nation is corrupt, morally and federally