Spend More Make Less?

The IRS outsourced tax collection in an effort to “put a dent in the $138 billion that taxpayers owe the government.”  This action cost the agency $20 million and netted a little over six million in past due monies.  Combined with contractor payments and relatively low collection rates, other cost factors included the streamlined approval of “tax-exempt organizations” as well as lack of funding for better direct (IRS) communication with tax payers.

I.R.S. Paid $20 Million to Collect $6.7 Million in Tax Debts