Washington, D.C. — U.S. Senate
Finance Committee Ranking Member Mike Crapo (R-Idaho) filed an amendment to the
Democrats’ reckless tax-and-spend legislation to prevent the monitoring and
reporting of sensitive American taxpayer information to the Internal Revenue
Service (IRS) by financial institutions.
The Democrats’ proposal would press private-sector financial
institutions into reporting deposit and withdrawal flows on their customers’
accounts above a mere $600 in value.
This comprehensive financial account reporting scheme would squeeze even
more resources out of responsible Americans and entrepreneurs, create an
unnecessary burden on financial institutions of all sizes, and violate almost
all Americans’ privacy.
“The
IRS financial institution reporting requirement forces financial institutions
to turn over detailed bank account information to the IRS based on vague and ‘flexible’
criteria, such as a $600 threshold and account inflows and outflows, which are
determined by the IRS,” said Crapo. “This time-draining burden disregards banking
privacy in order to squeeze more resources out of responsible Americans and
entrepreneurs. It subjects law-abiding
Americans to more intense targeting from the IRS and additional data
collection, a concern that was recently amplified by a leak of private taxpayer
information out of the IRS. I have long
been critical of big data collection activities, and oppose turning banks and
brokers into government tax collectors. My
amendment prevents the undue monitoring and reporting of sensitive American
taxpayer information to the IRS by financial institutions about deposits and withdrawals
made by any individual or business.”
The
Independent Community Bankers of America, Credit Union National Association, American Bankers Association and National Association of Federally-Insured Credit Unions support Crapo’s amendment, and have expressed
strong concerns with the proposal, citing concerns with the increased burden on
financial institutions; privacy concerns for customers; and other unintended
consequences for personal and business account holders across the spectrum.
Privacy
concerns at the IRS have only been amplified by the egregious apparent leak of taxpayer
information out of the Agency, with data ending up in the hands of a news
outlet which reported sensationalized and misleading claims about taxes paid by
named individuals.
Senator
Crapo also spoke about the Democrats’ IRS provision in previous remarks on the Senate Floor.