While Christmas is often associated with exchanging gifts and enjoying a day off, it also commemorates the birth of Jesus — a carpenter who shifted careers to preach, teach, and perform miracles.
Not all of Jesus’s actions won universal praise, however. He stirred controversy by associating with tax collectors, who were deeply despised at the time. One of his own apostles, Matthew, had been a tax collector.
To understand this dynamic, let’s examine why tax collectors were so hated during Jesus’s era — and whether that animosity persists today.
In the ancient Roman empire, the government was not directly involved in tax collection. Instead, the government engaged in tax farming. The government would sell tax collection rights in a given area to third parties for a fixed fee. The independent contractors, known as publicani, would then collect the taxes from the people with no limit as to how much they could collect. If they collected more than the fee they had paid to the government, then they profited. If they collected less than the fee, the publicani would have to eat the loss.
To maximize profit, the publicani would resort to harsh and unethical tactics. Property assessments were inflated in order to collect more taxes. Unpaid taxes were subject to very high interest rates. Sometimes, the publicani resorted to violence in order to collect. They could even call on Roman soldiers if needed.
The Jewish people were hit particularly hard by the publicani. As a result, tax collectors were despised and were considered sinners. The Talmud considered tax collectors to be in the same league as murderers and robbers. It also allowed Jews to lie to the publicani to avoid paying taxes. Tax collectors were not allowed to testify in Jewish courts. Jewish religious leaders excommunicated followers engaged in tax collection, who were considered traitors to their people.
In the New Testament, Zacchaeus was the archetypal publicani. He was the chief tax collector and became very wealthy by taking excessive taxes from his own people. But Zacchaeus was short and had to climb a tree to get a view of Jesus when he came to visit Zacchaeus’s city. Jesus called Zacchaeus by name and asked to stay at his home. Moved by the encounter, Zacchaeus pledged that he would give half of his possessions to the poor and repay fourfold everyone he cheated.
Today, the U.S. does not engage in tax farming. The IRS is in charge of collecting federal taxes. But changes in the law in 2006 require the IRS to delegate smaller, inactive tax debts to private collection agencies. While this may seem like modern tax farming, there are some differences. The agencies cannot take enforcement action such as tax liens, seizing bank accounts, or garnishing wages. Also, the collection agencies must agree to act professionally and abide by privacy rules. They must also follow the Fair Debt and Collection Practices Act which regulates when and how a collection agency can contact debtors.
Most tax collection cases are handled by the Internal Revenue Service’s Automated Collections System which, as the name implies, handles most collection cases electronically using automation. A collections representative can step in to resolve the account so long as the taxpayer calls to resolve the balance through an installment agreement, challenging the debt, or offering to settle the debt for less by submitting an Offer in Compromise.
Certain sensitive cases can be sent to a local tax collection specialist, known as a Revenue Officer (RO). Taxpayer accounts are referred to a RO if the balance is particularly large, or the taxpayer is constantly accumulating new tax debt, the most common being employment taxes which are usually assessed every three months.
Before the IRS can take punitive measures such as bank levies or wage garnishments, they must follow certain procedures, including allowing the taxpayer to request a Collection Due Process or to participate in the Collection Appeals Program. Both allow the taxpayer to resolve the matter with an IRS appeals officer or settlement officer.
Most states have similar tax collections policies and procedures. The most common difference between states and the IRS is that states tend to be more aggressive and their collection agents have more leeway to take enforcement action. Because of this and smaller state tax balances, most tax professionals recommend resolving tax debts with the state first if possible.
In modern society, tax collectors — now professional civil servants — are largely viewed as essential for funding public services and ensuring fairness by pursuing evaders. They no longer profit personally from collections. While some taxpayers resent or fear the IRS due to its enforcement authority, widespread hatred like in ancient times has faded. Surveys show moderate trust in the IRS to administer taxes fairly, with most interactions rated positively.
Jesus’s willingness to engage with the outcasts of his day highlights a timeless message: redemption and dignity for even the most scorned.
Steven Chung is a tax attorney in Los Angeles, California. He helps people with basic tax planning and resolve tax disputes. He is also sympathetic to people with large student loans. He can be reached via email at stevenchungatl@gmail.com. Or you can connect with him on Twitter (@stevenchung) and connect with him on LinkedIn.
The post From Sinners To Civil Servants: The Evolution Of Tax Collectors From Jesus’s Time To Today appeared first on Above the Law.