Letter: IRS Proposal for Reporting Is Nothing More Than a Hunting Exercise | Letters to the Editor


Last April, President Biden announced his U.S. Plan for Families, which promises many wonderful things such as more affordable education, full paid family and medical leave, expanded nutritional support for children and families, and more. larger tax credits for workers and families, to name a few. some.

What is funding this incredible plan? Well, tax reform, sure, but as always, the devil is in the details. As stated in the Treasury Compliance Program, “The President’s proposal requires disclosure of financial account information to increase visibility of gross revenue and expenditure for the IRS… Financial institutions would simply report additional data on financial accounts. financial accounts of these existing information statements.

Specifically, it would require credit unions and banks to report information to the Internal Revenue Service for accounts with balances or gross inflows / outflows exceeding $ 600. This requirement includes information on all deposit, loan and investment accounts of businesses and individual account holders.

During the markup of the Build Back Better Act, the House Ways and Means Committee removed the wording from the bill. However, that doesn’t mean the proposal is dead. In fact, it is more than likely to be reintroduced to the budget or rules committee before it hits the ground. I don’t have to tell you that if this language resurfaces and somehow gets passed, how devastating it will be for credit unions and banks, not to mention the massive breach of law. privacy and government oversight as it would be for US citizens.

About Joan Ferguson

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