House Committee on Oversight and Accountability Chairman James Comer (R-Ky.) and Rep. Russell Fry (R-S.C.) are currently conducting oversight of data sharing agreements between the Department of Treasury (Treasury), Consumer Financial Protection Bureau (CFPB), and the Internal Revenue Service (IRS). The lawmakers have sent letters to Treasury Secretary Janet Yellen, CFPB Director Rohit Chopra, and IRS Commissioner Daniel Werfel, requesting documents and communications related to the government's information collection and data sharing activities.
According to the lawmakers, there have been reports of agreements that allow for the sharing of consumer and small business financial transaction data between these agencies, potentially for purposes beyond the initial information collection. Expressing concerns, the lawmakers wrote, "Congress has repeatedly expressed concerns with such types of agreements."
The Committee's concerns stem from previous pushback in 2021 against a proposal by the Biden Administration for the IRS to collect transaction level data on transactions over $600. This proposal aimed to increase audits on the lower and middle class but was ultimately withdrawn due to strong opposition from Congress. The Committee now worries that the Administration may be using data sharing agreements to bypass Congress and utilize the collected data for purposes other than information collection, such as tax enforcement.
"We are troubled to hear reports that the Administration may be circumventing the will of Congress by using data collected for approved purposes and reallocating it for different purposes such as tax enforcement," the lawmakers expressed. They also raised questions about whether the government has failed to adhere to information collection requirements by obscuring the true intent behind a given information collection and bypassing proper rulemaking procedures.
The letters sent by Chairman Comer and Rep. Fry to Secretary Yellen, Commissioner Werfel, and Director Chopra are part of their effort to obtain more information and ensure transparency regarding these data sharing agreements.
The House Committee on Oversight and Accountability is taking this matter seriously and aims to hold the government accountable for its data sharing practices. As the investigation continues, the lawmakers are committed to uncovering any potential misuse of data and ensuring that the government abides by the necessary procedures and regulations.
The letters to Secretary Yellen, Commissioner Werfel, and Director Chopra can be accessed for further details on the lawmakers' concerns and requests.
This investigation highlights the importance of safeguarding data privacy and ensuring that government agencies use collected information solely for its intended purpose. It also emphasizes the need for transparency and proper oversight to prevent any misuse of sensitive financial data.
The Committee's efforts to shed light on these data sharing agreements and their potential implications for taxpayer privacy and information security are crucial in maintaining public trust and holding the government accountable.
Click this link to access more information: https://oversight.house.gov/release/comer-fry-probe-government-financial-data-sharing-agreements/
