ACA Letter to IRS Commissioner Concerning Private-Sector Debt Collection

On May 5th Glen E. Frost wrote a letter, on behalf of the American Citizens Abroad, to IRS Commissioner John Koskinen in regards to private collection firms based in the United States collecting debts of U.S. taxpayers with foreign addresses. The ACA stands behind the belief that U.S. citizens living overseas should not be subject to the recent private-sector debt collection program, as dealing with a collection agency based in the U.S. could create issues for Americans living overseas.

As a result of this letter, the IRS has issued the following statement:

“We will be reviewing the letter, but the companies participating in the private debt collection program are only licensed to operate in the U.S. states and territories. As a result, the IRS is excluding taxpayers who live outside the U.S. from the private debt collection effort. The IRS reminds taxpayers living outside the United States to be alert to phone scammers posing as debt collectors.”

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