In 2009, the Internal Revenue Service (IRS) discontinued its use of private collection firms to collect past-due taxes. One of the reasons cited for this discontinued use was the cost associated with it. The private bill collectors were taking a healthy cut of the funds being collected, and the IRS determined that it wanted the whole pie and not merely most of it.

Since 2009, the IRS has been in charge of its own collections. It has been determined that since that point, the IRS has spent more money than it has collected. As a result, New York Sen. Chuck Schumer has proposed legislation that will require the IRS to use private collectors. If this law passes, expect a bill collector to come knocking on your door if you have any unpaid taxes.