The American Bankers Association today joined more than 40 organizations representing a cross-section of financial and business interests in sending a letter to Speaker of the House Nancy Pelosi, Minority Leader Kevin McCarthy and all members of the House of Representatives strongly opposing a proposal under consideration as part of the reconciliation package that would establish an expansive new tax information reporting regime. This misguided proposal would directly impact almost every American and small business with an account at a financial institution.
As described by the Department of Treasury, the proposal would require financial institutions and other providers of financial services to track and submit to the IRS information on the inflows and outflows of every account above a de minimis threshold of $600 during the year, including breakdowns for cash.
“While the stated goal of this vast data collection is to uncover tax dodging by the wealthy, this proposal is not remotely targeted to that purpose or that population,” the groups wrote. “In addition to the significant privacy concerns, it would create tremendous liability for all affected parties by requiring the collection of financial information for nearly every American without proper explanation of how the IRS will store, protect, and use this enormous trove of personal financial information.”
The groups also expressed concern that the proposal raises significant privacy concerns that could harm efforts to reduce the number of unbanked Americans.
“Privacy concerns are cited as one of the top reasons why individuals choose not to open financial accounts and participate in the financial system,” the groups wrote. “This proposal would almost certainly undermine efforts to reach vulnerable populations and unbanked households.”
ABA, along with the other cosigners, urge members to oppose any efforts to advance this ill-advised new reporting regime.
Click here to read the full letter. A full list of signatories is below:
- American Bankers Association
- Consumer Bankers Association
- SIFMA
- Independent Community Bankers of America
- Air Conditioning Contractors of America (ACCA)
- National Association for the Self-Employed
- Global Cold Chain Alliance
- Specialty Equipment Market Association (SEMA)
- ACA International
- Independent Insurance Agents & Brokers of America
- Independent Electrical Contractors (IEC)
- AICC, The Independent Packaging Association
- National Stone, Sand & Gravel Association
- Credit Union National Association
- Electronic Transactions Association
- Southwest Cable Communications Association
- National Independent Automobile Dealers Association
- Decorative Hardwoods Association
- Energy Marketers of America
- Brick Industry Association
- Pet Industry Distributors Association
- National Association of Professional Insurance Agents
- American Financial Services Association
- Community Development Bankers Association
- Commercial Food Equipment Service Association
- Innovative Lending Platform Association
- National Bankers Association
- National Association of Federally-Insured Credit Unions
- American Land Title Association
- Auto Care Association
- International Franchise Association
- Promotional Products Association International
- Mortgage Bankers Association
- America’s SBDC
- Mid-Size Bank Coalition of America (MBCA)
- Manufactured Housing Institute
- National RV Dealers Association
- National Federation of Independent Business (NFIB)
- American Hotel & Lodging Association (AHLA)
- National Association for Surface Finishing
- National Association of REALTORS®