To Review: Back in September 2006 the IRS ignited controversy by outsourcing the collection of taxpayer's debt to third party (or private) debt collection agencies.
So what does that mean? That means if you owe, more eyes are seeing your personal information (e.g., Social Security Number, Phone Number). Additionally, the third party collectors are tempted to use pressure tactics to make people pay so they can fatten their wallets with a commission check. Think of them as hired mercenaries.
Good News: March 7, 2009, the IRS announced their decision to stop using private debt collection agencies. This means less paperwork and less headaches for the IRS and less confusion for taxpayers.
Bad News: It's true, no one can do the Federal Governments job better then the Federal Government. IRS Commissioner Douglas Schulman said he expect to hire more than 1,000 workers this year to increase collections and even encouraged workers from the private collection agencies to apply.
In a nutshell... The IRS is calling for reinforcements to collect on tax debt. They don't have extra agencies to contend with, which should streamline their approach. If you still owe, the IRS is out to get you! So get in compliance, and fast!