Private Firms to Chase Delinquent Taxpayers (washingtonpost.com)
I don't like the sound of this at all. The part about the private collectors keeping up to 25% of the amounts they recover seems like a strong incentive to engage in, shall we say, rapacious collections practices.

When Reps. Shelley Moore Capito (R-W.Va.) and Chris Van Hollen (D-Md.) teamed up in September to get the House to pass an amendment blocking the use of private companies to collect back taxes from delinquent taxpayers, it seemed the Bush administration plan might be doomed for at least a year.

But in the final hours of drafting a 3,300-page spending bill last month, House and Senate negotiators eliminated Capito's and Van Hollen's handiwork, clearing the way for the Internal Revenue Service to hire commercial debt collectors. These private agents could keep as much as 25 percent of the amounts they recovered.

While the Bush administration has strongly supported the initiative as a way to increase revenue collections amid growing deficits, critics contend it could lead to harassment of taxpayers and breaches of privacy. Labor groups representing federal workers also oppose the change. But it has the backing of the debt-collection industry, which has contributed heavily to GOP organizations and causes since Bush became president.
[more]