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Unique: House Republicans plan to unveil a bill Friday to block the Biden administration’s deeply controversial proposal Internal Revenue Service Additional scrutiny of most Americans’ bank accounts to crack down on wealthy tax fraud.

GOP lawmakers’ legislation — known as the Prohibiting IRS Financial Monitoring Act — would prevent the IRS from adopting any form of Biden’s proposal by barring new reporting requirements for banks that require them to access information on individuals’ personal accounts. will need to be disclosed. The rule would not apply to existing law that requires banks to report any transaction over $10,000 to the Financial Crimes Enforcement Network – which is part of banks’ anti-money laundering requirements.

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What’s in Biden’s Plan for the IRS to Monitor Nearly Every American’s Bank Account?

Rape. Drew Ferguson, R-Ga. The U.S. bill would bar Treasury Secretary Janet Yellen from requiring financial institutions to report the in-flows and out-flows of any accounts maintained by them, except under any oversight that exists under current law. It was co-sponsored by every Republican member of the powerful House Ways and Means Committee, including ranking member Rep. Kevin Brady, R-Texas.

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“This IRS surveillance is an invasion of individual privacy and with Democrats’ history of weaponizing the IRS for their own political gains, it is in the best interest of every American that we stop the use of personal financial information for this type of egregious power play. stop,” Ferguson said in a statement to Granthshala Business.

Biden’s plan would force banks, credit unions and other financial institutions to submit annual reports to the IRS of customers’ account deposits and withdrawals of $600 or more. While individual transactions will not be listed, the policy will apply to almost every American’s bank account.

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NS white House The U.S. has estimated that the policy, which would apply to bank, loan and investment accounts, could generate about $463 billion in additional revenue over the next decade.

But the proposal has drawn a fierce backlash from banks, who say it will increase compliance costs and add to an already existing burden that the industry faces in providing information from the government and Republicans, who say that This is the worst kind of government redundancy.

“We must not allow the IRS to invade the privacy of Americans by spying on their bank accounts,” Ferguson said. “The Biden administration and congressional Democrats have clearly demonstrated their intention to establish a comprehensive financial surveillance system using Americans’ personal financial information.”

IRS

Despite the criticism, the White House sticks to the plan. In a public memo on Thursday, Natasha Sarin, the Treasury’s deputy assistant secretary for economic policy, said the proposal was “spoiled by misinformation, as opponents amplified the dangerous myth that banks should be required to report all individual customer transactions to the IRS.” have to report.”

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The Treasury Department argued that collecting the additional information would help the IRS sniff out individuals who may be underreporting their taxes.

“Suppose a taxpayer has a deposit of $1 million flowing into their checking account in a year, but only reports $100 of income to the IRS,” Sarin wrote. “There may be a benign explanation for this, but it is questionable — and something the IRS may prefer to look at when selecting returns for potential audit scrutiny.”