An Exceptional Case of Outsourcing

Something to ponder about is whether those who represent in the Washington have given their common sense to some extraterrestrial. The most recent step that the congress has taken is the IRS, a project that has been authorized by the 2004 American Jobs Creation Act. The purpose is to collect delinquent tax bills. The agency can do the collection job at a much lesser job as compared to private collection agencies. The purpose of outsourcing is to save money and the whole purpose is being defeated here. The private debt collection agency is paid around 21 cents to 24 cents while the same work can be done by an IRS at a cost of 3 cents. The IRS has started assigning delinquent federal tax accounts to private collection companies. The reason IRS gives for not undertaking the activity itself is the lack of staff. IRS believes that over a period of 10 years the private debt collection agency will help collect $ 1.4 billion in outstanding taxes.