Capito Votes to Curb Waste and Protect West Virginia Jobs in Tax Bill

Press Release

Capito Votes to Curb Waste and Protect West Virginia Jobs in Tax Bill

Congresswoman Reiterates Support for Martinsburg-Based IRS Jobs

On a day when West Virginians have taxes on their mind, Rep. Shelley Moore Capito (R-WV) voted today to repeal a costly Internal Revenue Service private tax collection program and protect investment in West Virginia-based jobs.

The Taxpayer Assistance & Simplification Act - which passed the House this afternoon - will consolidate tax collection efforts within the Internal Revenue Service (IRS) and repeal wasteful private tax collection authority.

"The use of private tax collection agencies costs the IRS millions in startup and maintenance costs," noted Capito. "This incredible level of waste is unacceptable when countless officials have acknowledged that internal collection efforts by the IRS are more cost-effective."

The IRS Enterprise Computing Center in Martinsburg employs more than 1,000 tax professionals who assist citizens with tax filings and support IRS tax collection efforts. The repeal of the private tax collection system will save millions in maintenance costs by relying on IRS employees, rather than private collection agencies. It will also protect taxpayers and consumers from misdirected abuse, intimidating tactics and invasion of privacy.

"Taxpayers should have confidence that only their government - and not outside organizations - are responsible for their personal tax information," said Capito. "Tax collection is inherently a governmental function, and that principle should never have been violated."

Capito has been an outspoken critic of the IRS's decision to hire private tax collectors. In a 2006 letter to the IRS commissioner she wrote, "It is clear that this type of system would be ripe for abuse and harassment, and is a bad deal for all taxpayers."

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