ACA International joined more than 40 business groups representing financial and business interests in a letter urging House Speaker Nancy Pelosi, D-Calif., Minority Leader Kevin McCarthy, R-Calif., And members of the US House of Representatives not to move forward with a proposal under consideration as part of the reconciliation package that would establish a new extended tax information reporting requirement with important implications for consumers and consumers alike. small businesses with bank accounts.
“This proposal, as described by the Treasury Department, would require financial institutions and other financial service providers to track and submit to the IRS information on the inflows and outflows of each account above a de minimis threshold of $ 600 during the year, including cash allocations, âthe letter said. “While the stated goal of this vast data collection is to uncover tax evasion by the wealthy, this proposal does not remotely target that goal or that population. In addition to significant privacy concerns, it would create enormous liability for all parties involved in requiring the collection of financial information for almost all Americans without a proper explanation of how the IRS will store, protect and use this huge treasure trove of personal financial information. We believe this program is costly for all parties, that it is not suited to its objective and that it has the potential for unforeseen and serious negative consequences. â
The House returned from a six-week recess on Monday.
The House and Senate passed a resolution detailing the budget, including instructions for committees to allocate the $ 3.5 trillion in spending and add political details, NPR Reports.
âFor taxpayers, individuals and small businesses, the complexity of collecting this information will be invisible, but when tax season arrives, they will be faced with an IRS with vast new datasets to mine and new questions about it. activity of accounts which may have no evidence. link with tax liability. Confusion among taxpayers and tax preparation costs will increase, âthe letter said, adding that the proposal would undermine efforts to reach vulnerable populations and unbanked households.
Industry trade groups that signed the letter include the Consumer Bankers Association. American Bankers Association, SIFMA, Independent Community Bankers of America, Air Conditioning Contractors of America, National Association for the Self-Employed, Global Cold Chain Alliance, Specialty Equipment Market Association, ACA International, Independent Insurance Agents & Brokers of America, Independent Electrical Contractors , 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 Asso c 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, Manufactured Housing Institute, National RV Dealers Association and the National Federation of Independent Business.