Transportation, Treasury, and Independent Agencies Appropriations Act, 2005

TRANSPORTATION, TREASURY, AND INDEPENDENT AGENCIES APPROPRIATIONS ACT, 2005 -- (House of Representatives - September 15, 2004)

The SPEAKER pro tempore (Mr. Bradley of New Hampshire). Pursuant to House Resolution 770 and rule XVIII, the Chair declares the House in the Committee of the Whole House on the State of the Union for the further consideration of the bill, H.R. 5025.

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Mr. WILSON of South Carolina. Mr. Chairman, I congratulate the gentlewoman from West Virginia (Mrs. Capito) for her leadership on this amendment, and include my prepared remarks for the RECORD.

I would like to point out that we appreciate the expertise and competence of the employees of the IRS, and I am happy to be here to support the gentlewoman's amendment which reaffirms our faith in these Federal employees.

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Mr. Chairman, I rise in support of the Capito amendment to H.R. 5025. Under the proposed authority granted to the IRS in the FSC/ETI legislation to "contract out" Federal tax collections, the Federal Government is held harmless for any violations committed by contractors. Specifically, the legislation states:

"No Federal Liability.-The United States shall not be liable for any act or omission of any person performing services under a qualified collection contract." (section 6306(d) of H.R. 4520)

While the government can write contracts prescribing certain actions by contractors or their employees, the IRS does not have adequate contract oversight capabilities to ensure compliance. The Treasury Inspector General for Tax Administration (TIGTA) as recently as March, 2004 found that "..... a contractor's employees committed numerous security violations that placed IRS equipment and taxpayer data at risk. In some cases, contractors blatantly circumvented IRS policies and procedures even when security personnel identified inappropriate practices." (TIGTA Audit No. 000000010)

Currently, IRS employees are the only personnel who may contact taxpayers and collect Federal income tax. These individuals are thoroughly trained in all laws and regulations governing the collection of taxes and are held accountable to the people. If IRS personnel commit violations, they are disciplined or terminated and taxpayers may take legal action against the IRS for such abuse.

Under this proposal, the accountability shifts to third-party contractors whose employees may or may not have any specific training and who are motivated by an economic incentive, through a commission based payment, to "push the envelope".

Because this proposal was contained in a very complex international tax bill, Members did not have the opportunity to directly consider this significant policy change. The Capito amendment provides Members with the opportunity and I urge all my colleagues to support the amendment.

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