IRS proposed reporting requirements threaten taxpayer privacy and weigh on community financial institutions
Small businesses are the backbone of our economy, and the community financial institutions that serve these businesses are their lifeblood. Unfortunately, President BidenJoe BidenGrant Woods, a longtime friend of McCain and former Arizona AG, dies at 67.Reckless spending and tax proposals are poised to hurt Arkansas small businesses and the institutions that help them keep running.
Instead of working to create an environment that ensures that community banks and credit unions are able to continue to serve as trusted lenders and safe depositories, the administration is focused on increasing enforcement of the l ‘Internal Revenue Service (IRS) to fund its $ 3.5 trillion supporters’ human infrastructure plan.
We can all agree that the IRS plays an important role in enforcing our tax code and in meeting our obligations by Americans. But the agency has many problems and must focus on continuing reforms that emphasize responsiveness to taxpayer demands and needs. Unfortunately, the Biden administration is backing an idea that will increase risks to taxpayer privacy and weigh on small community financial institutions.
In order to finance his progressive wish list, the President proposed to require all financial institutions must report deposits and withdrawals of $ 600 to the IRS or more from corporate and personal accounts managed by federally regulated banking services. Currently, the reporting requirement is for transactions of $ 10,000 or more.
The fact that the president is touting his proposal as only having an impact on Wall Street and increasing income by encouraging tax evaders to comply voluntarily misses the mark. Lowering the reporting threshold would force financial institutions to turn over a huge amount of sensitive financial data to the IRS, raising serious privacy concerns.
Given the IRS Data Security Record, Including Data Breach in 2015, instructing the agency to obtain additional taxpayer information from nearly all Americans is a complicated and dangerous gamble, and the federal government has historically been unable to win.
This proposed declaration also raises concerns for community banks and small financial institutions, as it would impose unnecessary additional costs that would be passed on to consumers.
Community financial institutions exist because of long-standing and trusting relationships with their customers, including many small businesses. This proposal would likely encourage local banks to divert resources away from providing the credit needed by entrepreneurs and job creators, which could discourage generational clients from working with these institutions.
As a member of the Senate Subcommittee on Financial Services and General Government Estimates, I understand the importance of protecting consumers and ensuring financial stability through proper oversight. I am fighting against this excessive proposal which will compromise the privacy of taxpayers and put a strain on our smallest community financial institutions.
House Democrats have so far refused to put their weight behind this flawed rewrite of policy. Still, the White House remains committed to it and Senate Democrats will have to decide whether they wish to join the Biden administration in pursuing this troubling proposal.
Washington should focus on promoting a pro-growth economic agenda, allowing hard-working taxpayers to keep more of their money in their own pockets, making our small businesses more competitive and reducing the regulatory burden.
Unfortunately, by violating taxpayer privacy, tricking customers away from regulated financial systems, and weakening the ability of community financial institutions to hold deposits and provide credit, President Biden’s proposed declaration would do the exact opposite. .
John boozmanJohn Nichols Boozman Arkansas legislature splits Little Rock to secure GOP seats IRS proposed reporting requirements threaten taxpayer privacy, strain community financial institutions is the Senior US Senator from Arkansas and a distinguished member of the Senate Committee on Agriculture, Nutrition and Forestry.