{"id":798236,"date":"2021-09-21T11:28:45","date_gmt":"2021-09-21T15:28:45","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=798236"},"modified":"2021-09-21T11:57:51","modified_gmt":"2021-09-21T15:57:51","slug":"banks-oppose-bidens-new-proposal-on-irs-reporting","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/banks-oppose-bidens-new-proposal-on-irs-reporting\/","title":{"rendered":"Banks Oppose Biden\u2019s New Proposal on IRS Reporting"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbanks-oppose-bidens-new-proposal-on-irs-reporting%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=798236&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A trade group calls the attempt an \u2018overreach,\u2019 saying it would make U.S. banks \u2018police force for the IRS\u2019<\/p>\n<div>\n<p>WASHINGTON\u2014Opposition is growing to a new proposal aimed at curbing tax evasion that would be part of the $3.5 trillion reconciliation package under consideration by Congress.<\/p>\n<p>The proposal, which is pushed by the Biden administration, requires <a href=\"https:\/\/www.theepochtimes.com\/t-banks\">banks<\/a> and other financial institutions to report to the Internal Revenue Service (<a href=\"https:\/\/www.theepochtimes.com\/t-irs\">IRS<\/a>) on any deposits or withdrawals totaling more than $600 annually to or from all business and personal accounts.<\/p>\n<p>American Bankers Association (ABA) along with over 40 business and financial groups sent a <a href=\"https:\/\/www.aba.com\/advocacy\/policy-analysis\/coalition-letter-to-the-house-opposition-to-tax-information-reporting-proposal\">letter<\/a> on Sept. 17 to House Speaker Nancy Pelosi (D-Calif.) and House minority leader Kevin McCarthy (R-Calif.) objecting to the \u201cill-advised\u201d <a href=\"https:\/\/www.theepochtimes.com\/t-reporting\">reporting<\/a> proposal.<\/p>\n<p>\u201cWhile the stated goal of this vast data collection is to uncover tax dodging by the wealthy, this proposal is not remotely targeted to that purpose or that population,\u201d the letter stated.<\/p>\n<p>\u201cIn addition to the significant privacy concerns, it would create tremendous liability for all affected parties by requiring the collection of financial information for nearly every American without proper explanation of how the IRS will store, protect, and use this enormous trove of personal financial information.\u201d<\/p>\n<p>The Biden administration has been pushing Democrats to include the proposal in the $3.5 trillion spending bill in an effort to address tax evasion mainly by wealthy people.<\/p>\n<p>With the new reporting rule, \u201cthe wealthy can no longer hide what they\u2019re making,\u201d President Joe Biden said on Sept. 16 in a <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/speeches-remarks\/2021\/09\/16\/remarks-by-president-biden-on-the-economy-4\/\">speech<\/a> on the economy.<\/p>\n<p>\u201cThat isn\u2019t about raising their taxes,\u201d Biden added. \u201cIt\u2019s about the super-wealthy finally beginning to pay what they owe.\u201d<\/p>\n<p>The reporting regime aims to close the <a href=\"https:\/\/home.treasury.gov\/system\/files\/136\/The-American-Families-Plan-Tax-Compliance-Agenda.pdf\">tax gap<\/a>, according to the <a href=\"https:\/\/www.theepochtimes.com\/t-treasury-department\">Treasury Department<\/a>, which is the difference between taxes owed to the government and actually paid.<\/p>\n<p>A <a href=\"https:\/\/home.treasury.gov\/system\/files\/136\/The-American-Families-Plan-Tax-Compliance-Agenda.pdf\">report<\/a> released by the Treasury in May stated that the new reporting rule would help \u201craise $460 billion over the next decade.\u201d<\/p>\n<p>Almost every banking transaction and even transfers between one\u2019s accounts would be aggregated and reported to the IRS, according to Paul Merski, group executive vice president at the Independent Community Bankers of America (ICBA), which represents nearly 5,000 community banks in the United States.<\/p>\n<p>\u201cIt\u2019s a dragnet, it\u2019s a collection of data in the scale that we\u2019ve never seen before in the financial sector,\u201d Merski told The Epoch Times.<\/p>\n<p>ICBA is among the financial groups that strongly oppose Biden\u2019s proposal, calling it an \u201coverreach\u201d by the federal government.<\/p>\n<p>Banks already report a tremendous amount of data to the IRS. According to a U.S. Government Accountability Office report, more than <a href=\"https:\/\/www.gao.gov\/products\/gao-21-102\">3.5 billion<\/a> information returns were received by the IRS for tax year 2018. A large number of these come from banks, ABA says. These include reporting interest paid on bank accounts, dividend income, brokerage transactions, mortgage interest, and more.<\/p>\n<p>Under the Bank Secrecy Act, U.S. financial institutions also report to the government all wire transfers over $10,000 as well as suspicious cash transactions to prevent criminal activities such as money laundering.<\/p>\n<p>\u201cBanks are already reporting billions of pieces of information and you\u2019re getting to the point where the banks are becoming the police force for the IRS,\u201d Merski told The Epoch Times.<\/p>\n<p>\u201cI don\u2019t think people, small business owners know about this profiling that the IRS wants to put together,\u201d he added. \u201cSo, it\u2019s basically a profiling; they want to see your transactions and create a profile on you, and if they don\u2019t like what they see, then they can go after you.\u201d<\/p>\n<p>Treasury Secretary Janet Yellen sent a <a href=\"https:\/\/www.wsj.com\/articles\/yellen-irs-push-democrats-to-require-banks-to-report-annual-account-flows-11631727020\">letter<\/a> to House Ways and Means Committee Chairman\u00a0Richard Neal (D-Mass.) last week, asking Democrats to include a \u201csufficiently comprehensive\u201d reporting provision in the bill \u201cso that tax evaders are not able to structure financial accounts to avoid it.\u201d<\/p>\n<p>It is unclear whether some version of the proposal will make it into the final bill, but the Ways and Means Committee left out the administration\u2019s proposal in the legislation approved by the committee due to the growing backlash.<\/p>\n<p>Neal, however, indicated that the committee is in <a href=\"https:\/\/thehill.com\/homenews\/house\/572473-house-panel-advances-key-portion-of-democrats-35t-bill?rl=1\">discussions<\/a> with the administration on various proposals to increase reporting requirements.<\/p>\n<p>According to Merski, the provision could be added back to the budget reconciliation bill at any stage in the process, especially at the last minute. The bill only needs a simple majority to pass in the Senate.<\/p>\n<p>\u201cOur fear is that this is so onerous that they\u2019re waiting to the last second to put this in, but they\u2019re dead serious about putting this proposal in,\u201d he said.<\/p>\n<p>An ICBA poll conducted by Morning Consult found that <a href=\"https:\/\/www.icba.org\/newsroom\/news-and-articles\/2021\/09\/07\/icba-two-thirds-of-voters-oppose-irs-reporting-plan\">67 percent<\/a> of voters oppose the new IRS reporting proposal.<\/p>\n<p>\u201cThe provision is a violation of Americans\u2019 privacy rights and would be a crushing burden on community banks and credit unions struggling in the midst of the pandemic,\u201d John Berlau, a senior fellow at the Competitive Enterprise Institute told The Epoch Times.<\/p>\n<p>\u201cThe IRS already gets plenty of data on taxpayers through forms such as 1099s, and does not need instant access to these small transactions to go after tax cheats,\u201d he said.<\/p>\n<p>According to the Treasury Department, Biden\u2019s proposal is \u201cintegral to addressing evasion.\u201d<\/p>\n<p>The tax gap disproportionately benefits wealthy people because their income mainly come from \u201cnon-labor sources where misreporting is common,\u201d the Treasury report stated.<\/p>\n<p>\u201cThe tax gap totaled nearly $600 billion in 2019 and will rise to about $7 trillion over the course of the next decade if left unaddressed.\u201d<\/p>\n<div class=\"one_author_block round\">\n<div class=\"top_row\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/08\/15ef0812da90bd74_ttl7dayCNO_WEB_EmelAkan-1.jpg\" alt=\"Emel Akan\" \/><\/p>\n<div class=\"names\">\n<p>Emel Akan<\/p>\n<p>reporter<\/p>\n<\/div>\n<p>Follow<\/p>\n<\/div>\n<p>Emel Akan is White House economic policy reporter in Washington, D.C. Previously she worked in the financial sector as an investment banker at JPMorgan and as a consultant at PwC. She graduated with a master\u2019s degree in business administration from Georgetown University.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A trade group calls the attempt an \u2018overreach,\u2019 saying it would make U.S. banks \u2018police force for the IRS\u2019 WASHINGTON\u2014Opposition is growing to a new proposal aimed at curbing tax &#8230;<\/p>\n","protected":false},"author":7,"featured_media":2315279,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-798236","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/798236","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=798236"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/798236\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=798236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=798236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=798236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}