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Arizona Attorney General Mark Branovich in a letter this week urged top four congressional leaders to reject one Biden Administration’s proposal that would force banks to provide account details of most customers Internal Revenue Service, even after the White House agreed to reduce the scope of the policy.

“Should this proposal be codified into law, it would be another dangerous, autocratic power grab by the federal government,” Branovich wrote in the letter sent on Wednesday. “It would also be a higher cost of doing business for financial institutions, especially community banks.”


Under the new plan Senate Democrats unveiled Tuesday, banks, credit unions and other financial institutions would be required to report accounts with deposits and withdrawals of more than $10,000 annually, rather than the $600 limit President Biden had set. was initially proposed.

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The Treasury Department’s endorsement of the pared-back plan comes after a steady lobbying campaign from banking groups and other industry organizations, in addition to fierce pushback from Republican lawmakers, who call it the worst type of government overreach. gives amount for

Branovich, a Republican running in Arizona’s hotly contested GOP primary to replace Sen. Mark Kelly, called on Capitol Hill lawmakers to listen to banks and financial groups that are warning of the measure — even if it has little reach. Presents a potential financial privacy risk for customers, increasing compliance costs for banks and adding to the already existing burden the industry faces in reporting information to the government.

“Congress should consider and address these institutional concerns before proceeding with any such legislation,” Bronovich wrote, citing Sept. Letter From over 40 banks who asked lawmakers to vote against the IRS proposal. In the letter, financial institutions warned that the plan could create “tremendous obligations” for all involved by requiring the collection of financial information for all Americans “without a reasonable explanation of how the IRS will store, protect and use this vast trove.” personal financial information.”

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“This proposal will create significant operational and reputational challenges for financial institutions, increase tax preparation costs for individuals and small businesses, and create serious financial privacy concerns,” they wrote. “We urge members to resist any attempt to advance this ill-advised new reporting regime.”

The White House has repeatedly defended the plan, writing in a memo to congressional Democrats that the IRS requires banks and financial institutions to provide “a little bit of high-level information” on account flows to the agency for wealthy Americans. Gives more information about earnings. from investment and business activities. Recipients of federal benefits such as unemployment and Social Security would be exempt from the policy, which would also exclude any income received through a paycheck in which federal taxes are automatically deducted.

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“This is a well-thought-out amendment: For American workers and retirees, the IRS already has information on wage and salary income and the federal benefits they receive,” said a Treasury Department fact sheet on the changes.

Banks are already required to report any transaction over $10,000 to the Financial Crimes Enforcement Network – which is part of the anti-money laundering requirements.

The Biden team has stressed that banks must not report individual transactions to the IRS, but “basic, high-level information on account inflows and outflows” and audit rates for Americans of no less than $400,000 annually. Will increase