IRS Scales Back IT Outsourcing Plans; Debt Collection Untouched

by Mike Bevel, CollectionIndustry.com

What started out as a grand plan for the IRS is slowing down from a bang to a whimper.

According to ConsumerAffairs.com, the agency reports that it is planning to reduce a $103 million contract with IAP Worldwide Services, changing the plan to outsource its data collections from seven centers to just two.

In addition, the IRS also announced that it was terminating a plan to outsource the technical support of over 100,000 of its computer workstations to a third party.

Of more concern to the collections industry is the continually beleaguered plan to privatize overdue tax collections through contracts with private collection agencies. In the current iteration of downsizing and revamping – there’s seemingly no change one way or the other to the agency’s plans for privatization. Insiders see the Democrats’ takeover of the House and Senate to not be a welcoming turn of events for this particular plan.

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