And then there were two.

Though it declined to elaborate, citing "federal procurement regulations," the IRS announced that it will renew the contracts of only two of the original three private debt collection agencies participating in its pilot back-tax collection program.

CBE Group Inc. and Pioneer Credit Recovery Inc. are both still in the running, with contracts extended through March of 2008 (or until the Democrats kick them out). Left out is Linebarger Goggan Blair & Sampson LLP.

"The CBE Group and Pioneer Credit Recovery gained extensive experience in the first phase of the debt collection program and are well positioned to move the program forward," the IRS said in a statement. For the second phase of the project, the IRS plans to contract with up to 10 firms.


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