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Washington, D.C. — The leader of the union representing Internal Revenue Service (IRS) employees today applauded a letter from Sen. Byron Dorgan (D-N.D.) and 16 of his Senate colleagues calling on the Senate Finance Committee to “examine thoroughly” the views of IRS commissioner-nominee Douglas H. Shulman on the highly-controversial agency program using private debt collectors to pursue tax debts.

“The contracting out of the inherently governmental function of collecting taxes is one of the most critical issues defining the IRS as we move forward,” said President Colleen M. Kelley of the National Treasury Employees Union (NTEU).

The union’s longstanding opposition to the use of private tax collectors drew strong support today from 17 senators, who reiterated their concerns about the program in a letter to Finance Committee Chairman Sen. Max Baucus (D-Mont.)

“While we understand and commend efforts to ensure that all taxpayers pay their fair share of taxes,” they wrote, “we believe tax collection is an inherently governmental function that should only be performed by trained and proficient IRS employees.” They expressed their continuing support for S. 335, legislation introduced by Sen. Dorgan and Sen. Patty Murray (D-Wash.), that would end the IRS’s use of private tax collectors.

The senators’ letter reviewed the substantive objections to the program contained in the recent report to Congress of the IRS’s own National Taxpayer Advocate. In her report, Taxpayer Advocate Nina Olson said not only is the program failing in most key respects, it is clear to her that the agency has put the interests of the private tax collectors ahead of taxpayers.

Olson noted that the program’s first-year revenue to the Treasury was significantly less than projected—resulting in a loss of some $50 million when start-up and program maintenance costs are included—and that the IRS already has reduced sharply its projected estimate of revenues for the current fiscal year.

NTEU has been leading the fight against this ill-conceived, costly program that also threatens taxpayer privacy by turning their personal and sensitive tax information over to the industry that, year after year, generates the most consumer complaints to the Federal Trade Commission.

NTEU is the largest independent federal union, representing 150,000 employees in 31 agencies and departments.