EXCLUSIVE: House Republicans plan to unveil a bill on Friday to block the Biden administration’s deeply controversial proposal to give the Tax service additional control over the bank accounts of most Americans to crack down on tax evaders of the rich.
Legislation from GOP lawmakers – known as the Prohibit IRS Financial Supervision Act – would prevent the IRS from adopting any form of Biden’s proposal by banning new reporting requirements for banks that would require them to disclose information on the private accounts of individuals. The rule would not apply to an 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.
WHAT IS BIDEN’S PLAN FOR THE IRS TO MONITOR ALMOST ALL US BANK ACCOUNTS?
Representative Drew Ferguson, R-Ga .’s bill would prohibit Treasury Secretary Janet Yellen from requiring financial institutions to report the inflows and outflows of any accounts they maintain, other than any oversight that exists under current law. He was co-sponsored by all Republican members of the powerful House Ways and Means Committee, including leading member, Rep. Kevin Brady, R-Texas.
“This IRS surveillance is an invasion of individual privacy and with the Democrats’ history of arming the IRS for their own political gain, it is in the best interests of every American that we prevent the use private financial information for this type of blatant power play, “Ferguson said in a statement to FOX Business.
Biden’s plan would require banks, credit unions and other financial institutions to report deposits and withdrawals from customer accounts of $ 600 or more to the IRS each year. Although individual transactions are not listed, the policy would apply to almost all American bank accounts.
The White House 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 would increase compliance costs and add to the already existing burden the industry faces by handing over information to the government and from Republicans who say it equates to the worst. type of government overrun.
“We shouldn’t allow the IRS to invade the privacy of Americans by rummaging through their bank accounts,” Ferguson said. “The Biden administration and the Congressional Democrats have made it clear that they intend to institute a broad regime of financial supervision using Americans’ private financial information.”
Despite criticism, the White House has upheld the plan. In a public memo Thursday, Natasha Sarin, the Treasury’s assistant deputy secretary for economic policy, said the proposal was “tainted with disinformation, as opponents have raised the pernicious myth that banks will have to report all customer transactions. individuals to the IRS. ”
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The Treasury Department argued that collecting additional information would help the IRS detect people who may be evading their taxes.
“Suppose a taxpayer has $ 1 million in deposits in their checking account in a year, but only reports $ 100 in income to the IRS,” Sarin wrote. “There may be a benign explanation for this, but it is suspect – and something the IRS may prioritize when selecting returns for a potential audit review.”