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April 17, 2006
Banks first, now credit card companies partner with government
The Justice Department announced last week that it successfully summoned and obtained PayPal Inc. customer records, the Wall Street Journal reported on April 12 in its story, ``U.S. Seeks PayPal Customer Data In Attempt to Find Tax Evaders.'' The agency, along with the Internal Revenue Service, is trying to combat the spending of dollars held in offshore accounts, according to the story.
Justice Department and IRS officials note in the story that this isn't the first time the federal government acquired records from private credit firms. MasterCard International Inc., Visa International and American Express Co. were forced to turn over records in 2000 and 2001, and 141 individual merchants had to provide payment information, according to the story.
The public continues to be largely unaware of the summons process. Even journalists at the news conference where the case was announced were unaware of the ongoing efforts by the Justice Department and the IRS. Banks already are required to consistently report account information; credit card companies appear to be the next partnership.
Posted by Dalia Naamani-Goldman at April 17, 2006 10:35 AM
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