NEWS
RELEASE
National
Treasury
Employees 1750
H Street N.W. *
For Immediate Release Contact:
Dina Long, Ext. 7058
Mike Drapkin,
Ext. 7011
NTEU Members
at IRS Raise Serious Concerns About Agency Collection of Political
Information
Kelley, who has previously criticized IRS’s lack of contractor oversight, said it was inappropriate for an IRS contractor to be collecting and transmitting to the agency information on the political affiliation of taxpayers, which “raises an appearance of possible impropriety that could erode taxpayer confidence in the independence of our voluntary compliance system.”
In her letter, the NTEU leader said she has “the utmost respect for and confidence in IRS employees and their professionalism” in handling such information, emphasizing that they are the ones who brought the issue to light.
At the same time, Kelley said she
was very surprised to learn that IRS leadership did not know about this
practice. It was only after NTEU’s inquiry that IRS requested a review of the
data it receives in connection with what it refers to as its asset locator
program. Kelley said she was even more surprised to learn that IRS leadership
found this practice to be appropriate.
While IRS employees clearly need as much relevant information as possible to ensure that non-filers, under-reporters and others are located and informed of their tax liabilities, the union leader said, “these employees also are keenly aware that taxpayers must trust that IRS actions are independent and not influenced by personal or political gain.”
She called the willingness of the IRS to approve the gathering of information about taxpayers’ political affiliations “yet another red flag” pointing directly at the agency leadership’s inability to appreciate the importance of privacy to taxpayers.
While the gathering of the political information does not seem to be related to any improper motives, but rather part of information readily available in the private marketplace, Kelley said, Congress should require that the IRS suspend its current use of this information and delay the impending award of tax collection contracts until it is clear what information tax collectors—whether federal employees or private companies—should be using.
IRS officials have repeatedly testified on Capitol Hill that the agency’s contract oversight capabilities are very strong and will ensure that private companies about to enter the federal tax collection arena will face close scrutiny, a claim that is unsupported by past practice.
“The IRS plan to hire private sector debt collectors already puts at risk a variety of personal and sensitive taxpayer information, including Social Security numbers,” Kelley said. “This latest revelation is yet another example of the IRS’s long history of poor contractor oversight.”
Under the IRS privatization plan, it would hire private sector debt collectors to seek repayment of tax debts—rather than have the work performed more effectively and efficiently by IRS employees—and pay the private companies a bounty of up to 25 percent of the money they collect. A similar effort in 1996 was so flawed that it led to cancellation of a further proposed program the following year.
NTEU is the largest independent federal union, representing some 150,000 employees in 30 agencies and departments, including some 94,000 in the IRS.