10/27/2021 | News release | Distributed by Public on 10/27/2021 13:10
As your community bank, we want our customers to know the facts, especially when it relates to concerning developments around public policy that expose your financial privacy.
A new proposal in Washington would force banks to tell the IRS about any customer with more than $10,000 running through their bank account each year.
Our interpretation is that this reporting would apply to personal and business accounts, and would cover all types of accounts - deposits, loans and investments.
Congress is now quickly advancing this proposal through a budget reconciliation package, which needs only a simple majority to pass.
We believe this indiscriminate bank account reporting to the IRS would create an unacceptable invasion of privacy for our customers and cause unnecessary harm to small businesses.
While policymakers are attempting to quell the public backlash against the proposal - for example, lawmakers originally proposed reporting any transaction above $600 before it was promptly walked back - we do not believe any tweaks can salvage this misguided plan.
It is our belief that current revisions would only make the policy more difficult to implement, and do nothing to address the proposal's privacy, due process, and data security concerns.
As community bankers and consumers have repeatedly told policymakers, the proposal would:
If you wish to learn more about this issue, or you'd like to share your opinion with Congress, visit banklocally.org/privacy for additional resources.