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Alarms Raised Over IRS's Decision to Allow Private Debt Collectors Direct Access to Taxpayer Bank Accounts

January 10, 2020 / Yubanet

United States Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee Subcommittee on Financial Institutions and Consumer Protections, and Senator Sherrod Brown (D-Ohio), Ranking Member of the Senate Banking, Housing and Urban Affairs Committee, sent a letter to Internal Revenue Service (IRS) Commissioner Charles Rettig raising alarm about the agency’s October 2019 decision to introduce preauthorized direct debit as a new payment method for the Private Debt Collection (PDC) program, allowing Private Collection Agencies (PCAs) direct access to taxpayers’ financial account information to set up automatic deductions. This is a reversal of long-standing IRS policy that taxpayers should only provide their financial account information directly to the IRS.