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Washington — The leader of the union representing Internal Revenue Service (IRS) employees said today she is in complete agreement with the views expressed by Sen. Byron Dorgan (D-N.D.) about the foolhardy and costly use by the IRS of private tax collectors—and supports strongly his legislative efforts to end the program.

“Senator Dorgan’s pointed criticisms that the IRS program essentially is a waste of money and a vehicle for abusive treatment of taxpayers are right on the mark, and should be heeded both by every member of Congress and the IRS,” said President Colleen M. Kelley of the National Treasury Employees Union (NTEU). Kelley has been leading the fight against the use of private tax collectors.

The Dorgan statement, made on the floor of the Senate yesterday, was particularly critical of the net loss of $50 million in the program’s first year, when start-up and commissions paid to private companies are taken into account.

“I don’t know how you lose $50 million when you are collecting taxes,” he said. “That takes some genius, apparently.”

President Kelley noted that the IRS has reduced its estimate of likely proceeds to the Treasury in the program’s second year, admitting that the use of private tax collectors won’t reach the break-even point this year either.

Kelley emphasized the union’s continuing support for congressional approval of S. 335, introduced by Sen. Dorgan and Sen. Patty Murray (D-Wash.), which would suspend the program and limit the use of appropriated funds for it.

“The Dorgan-Murray bill would work to keep the collection of taxes in the hands of IRS employees, where it not only belongs but where taxpayer privacy is protected and taxpayer dollars are spent most effectively,” President Kelley said.

NTEU’s efforts, which have led to increased understanding among members of Congress about the details and operation of the program, have included repeated warnings not only about its runaway costs, but the serious risks to taxpayers’ personal information that stem from putting such data in the hands of debt collection companies. These firms make up an industry that annually generates the most consumer complaints to the Federal Trade Commission.

Sen. Dorgan reminded his colleagues the program was tried once before and proved to be a financial failure replete with violations of the Fair Debt Collection Practices Act.

“It makes no sense at all to have been through this and then to farm it out to a private debt collection agency and find one elderly couple who gets 150 telephone calls over 27 days from a collection agency,” he said, even though they were not the targeted taxpayers. That example was made public at a hearing on this issue last fall by the House Ways and Means Committee.

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