Debt Collection Authorities under the Debt Collection Improvement Act
Summary
This proposed rule gives the U.S. Treasury Department stronger tools to collect money that people and businesses owe to the federal government, such as unpaid taxes, student loans, and other debts. The changes aim to make the debt collection process more efficient, though they could affect how and when the government contacts people who owe money.
Key Points
- 1The Treasury Department would have expanded powers to collect federal debts through wage garnishment, bank account levies, and other enforcement methods
- 2The rule could affect millions of Americans with outstanding federal debts, including unpaid taxes, federal student loans, and overpaid government benefits
- 3People and businesses would have a comment period until February 24, 2026 to share concerns about how these new collection authorities might impact them
- 4The regulation streamlines procedures so the government can act faster to recover money owed, potentially with fewer notification steps required before taking collection action
- 5This applies to debts across multiple federal agencies, not just the IRS, making collection practices more uniform across government
Key Dates
December 23, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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