Former Kansas City Federal Reserve Chairman and CEO Thomas Hoenig discusses possibility of IRS reviewing bank transactions over $ 600, Federal Reserve considering government-backed cryptocurrency and Biden’s economic program.
Local financial institutions have been pushing clients in recent days to denounce a Treasury Department proposal that would require the IRS to track transactions valued at $ 600 or more, joining Republican lawmakers who have criticized the plan.
Local branches took to social media to voice their concerns about the proposal. Supported by Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig, the proposal would require banks to report account data with at least $ 600, or at least $ 600 in transactions.
The proposed change is one of many tax reporting proposals that could be included in President Biden’s $ 3.5 trillion spending bill. The original version of the bill provided for $ 79 billion in new funding for the IRS, although that number may be reduced when the Senate finally passes its version.
“We work for our clients and our community, not for the IRS. Join us in telling Congress that the bank account profiling offered by the IRS is intrusive and indiscriminate to our clients,” FNB Community Bank wrote, an Oklahoma-based institution, in a statement. August 31 Facebook post that has been shared over 73,000 times.
IRS SNOOPING PROPOSAL “A DANGEROUS IDEA”: THE FORMER NEAR THE KANSAS CITY FED
“If passed, the law will invade consumer privacy, increase the cost of tax preparation for small businesses and create unnecessary and costly burdens on banks,” said the Capital City Bank, an institution. based in Florida, in a statement. September 13 message which has been shared over 5000 times.
Former Kansas City Fed Chairman Thomas Hoenig says the middle class will be “caught up” by Biden’s proposal on the IRS.
“This comprehensive report on bank accounts may soon be adopted in Congress. If you feel uncomfortable with this proposal, or if you believe it is an invasion of your privacy, we encourage you to contact your congressman as soon as possible ”Western State Bank in Kansas stated in a September 14 message shared over 3000 times.
FOX Business has reviewed several other similar calls to action made by financial institutions to their customers. The baseline effort highlights a sense of alarm among financial institutions, which argue that the Treasury’s proposal is invasive and poses a risk to consumer privacy and a major cost to financial institutions.
Yellen and other supporters say the plan is needed as part of a larger effort to tackle tax evasion and close the so-called “tax gap,” or the difference between what is owed and what is due. is seen.
Representative Ashley Hinson, R-Iowa, argues the IRS should not snoop around Americans’ bank accounts and discusses former President Trump’s expected rally in Iowa.
Last month, a coalition of more than 40 banking and business associations, including the Consumer Bankers Association and the American Bankers Association, sent a letter to parliamentary leaders warning that the proposal “would create significant operational and reputation challenges for businesses. financial institutions, would increase the costs of preparing tax returns. for individuals and small businesses, and create serious financial privacy concerns. “
Republicans are already taking action to stop the measure.
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Senator Tommy Tuberville, R-Ala., Recently introduced the Privacy Act of 2021, which would prevent federal agencies from requiring institutions to “report data on financial transactions or account balances. accounts with the IRS “. Representative Ashley Hinson, R-Iowa, introduced a complementary bill in the House.
