Bidens New IRS Reporting Requirements

The American Bankers Association, along with more than 40 trade associations representing a broad range of U.S. businesses, sent a joint letter to House leadership and members on Friday, September 17 expressing concerns about the controversial tax reporting provision floated by the Biden Administration that would expand mandatory IRS reporting on bank account information. The proposal would require financial institutions to report every transaction above $600 to the IRS for every personal and business account.

In this letter, the associations wrote:

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. 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. We believe that this program is costly for all parties, not fit for purpose, and loaded with potential for unintended and serious negative consequences.

You may read the letter in its entirety by clicking here.

While the proposal was not included in the earliest stages of the bill’s consideration, administration officials have signaled in recent days that it remains a priority for the Biden Administration.

Although financial institutions continue to place their client's privacy and account information at the forefront of customers' banking relationships, you should join the fight and continue to advocate in opposition to this proposal.

Take action now by generating a letter to your member(s) of Congress.