A banking industry trade group says policymakers in Washington D.C. have proposed requiring banks to report virtually all their customers’ bank account information and activity to the IRS regardless of the customers’ consent.
According to the Independent Community Bankers of America, the Biden Administration wants financial institutions report details on all transactions worth more than $600 to the IRS, for both personal and business accounts.
Platte Valley Companies President and CEO Hod Kosman tells us the proposal seems unthinkable, and overly burdensome, but banks would be forced to comply. “How they’re going to sift that down, and come back to you and say ‘Ok, you didn’t give us a 1099, and owes us a penalty’ or owe us whatever, I have no idea but that is really unbelievable at this point in time,” said Kosman. “The privacy issues (are a) glaringly huge issue for us, and so we’ll be opposing it very, very strongly.”
Kosman says the cost of compiling a massive amount of information, likely billions of transactions in a $20 trillion economy, would eventually be passed on to consumers.
To fight against the plan, ICBA is orchestrating an email campaign in which those opposed to the Biden plan can provide their name and address, and letters would be emailed to your Senate and Congressional representatives, asking them to fight against the proposal.