Biden Revises IRS Surveillance Plan, Banks Still Oppose | national

(The Center Square) – The Biden administration is amending its plan to require banks to report all accounts at least $ 600 to the IRS, but banks say those changes are not enough.

Biden kicked off increasing federal tax revenues through more audits and a stricter IRS as a way to help fund his proposed trillions in federal spending. His initial plan to require the reporting of all $ 600 accounts has sparked major controversy.

Biden is now expected to release more details on a revised plan that would raise the threshold from $ 600 to $ 10,000.

“Today’s new proposal reflects the administration’s strong belief that we should target those at the top of the income scale who are not paying the taxes they owe, while protecting workers. Americans by setting the bank account threshold at $ 10,000 and granting an exemption for employees like teachers and firefighters, ”Treasury Secretary Janet Yellen said.

Banks, however, said the change would make little difference and millions of people would still be eligible for reporting requirements.

“Today marks yet another attempt by the administration and congressional leaders to explain to the American people why the government needs more information about them,” said Rob Nichols, chief executive officer of the American Bankers Association. “Even with the changes announced today, this proposal still goes too far in forcing financial institutions to share private financial data with the IRS of millions of customers who are not suspected of cheating on their taxes. The exclusion of payroll and federal program beneficiaries does not apply to the millions of other taxpayers who would be affected by the proposal. Not all self-employed people are millionaires. How about independent hairdressers, convenience store owners and farmers to name a few? “

Lawmakers, businesses, professional associations and nonprofits have all sounded the alarm bells about the plan, saying it is a major invasion of privacy sweeping away many more. enough data to catch the wealthy tax evaders.

The banks also pointed out the significant expense involved in tracking and reporting such a large amount of information to the IRS.

“If passed, this new proposal would still raise the same privacy concerns, increase tax preparation costs for individuals and small businesses, and create significant operational challenges, especially for community banks,” said Nichols. “Given the recent history of the IRS, privacy and data security concerns for Americans are real and should not be taken lightly. That is why Americans across the country have expressed strong opposition to this proposal. We firmly believe that everyone should honor their tax obligations, but this blunt instrument is not the right tool to solve this problem.

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