Local branches rely on social media to raise awareness of their concerns
Local financial institutions have prompted clients in recent days to speak out against a Treasury Department proposal that would require the IRS to track transactions worth $600 or more, joining Republican lawmakers who called for the plan. has criticized.
Local branches have relied on social media to raise awareness of their concerns about the proposal. Backed by Treasury Secretary Janet Yellen and IRS Commissioner Charles Ratig, the proposal would require banks to report data from accounts with transactions worth at least $600, or at least $600.
The proposed change is one of several tax-reporting proposals that could be included in President Biden’s $3.5 trillion spending bill. The original version of the bill included $79 billion in new funding for the IRS, although that number could have been trimmed when the Senate finally passed its version.
FNB Community Bank, an Oklahoma-based organization, wrote in one: “We work for our customers and our community, not the IRS. Join us in telling Congress that proposed IRS bank account profiling is intrusive to our customers.” And it’s indiscriminate.” August 31 Facebook post that was shared over 73,000 times.
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“If passed, the law would invade consumer privacy, increase tax preparation costs for small businesses and create unnecessary and costly burdens for banks,” Capital Citibank, a Florida-based institution, said in a statement. september 13 post Which was shared more than 5,000 times.
“This comprehensive bank account reporting may soon be implemented in Congress. If you feel uncomfortable with this proposal at all, or if you believe it is an invasion of your privacy, we will inform you as soon as possible from your Member of Congress. encourage you to contact,” said Western State Bank in Kansas 14 september post Shared over 3,000 times.
Granthshala Business reviewed several other similar calls to action for its clients from financial institutions. The grassroots effort highlights a sense of alarm among financial institutions, which argue that the Treasury’s proposal is offensive and poses risks to consumer privacy and a huge cost to financial institutions.
Yellen and other supporters say the plan is necessary as part of a broader effort to crack down on tax evasion and close the so-called “tax gap,” or the gap between what is owed and what is collected.
Last month, a coalition of more than 40 banking and business associations, including the Consumer Bankers Association and the American Bankers Association, sent a letter to House leaders warning it would “create significant operational and reputational challenges for financial institutions, increasing tax preparation costs.” for individuals and small businesses, and create serious financial privacy concerns.”
Republicans are already taking steps to block the measure.
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Tommy Tuberville, R-Ala., recently introduced the Protecting Financial Privacy Act 2021, which would bar federal agencies from requiring institutions to “report data on financial transactions or account balances to the IRS.” Rep. Ashley Hinson, R-Iowa introduced a companion bill in the House.