PPAI has joined with the American Bankers Association (ABA) and almost 40 other 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 a new tax information reporting regime.
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.”
PPAI, ABA and the other cosigners urge members to oppose any efforts to advance the new reporting requirement.
Click here to read the full letter.
