September 21, 2021
Tax Reporting Proposal
Congress is proposing a sweeping expansion of tax information reporting. The proposal, if enacted, would require banks to report to the IRS detailed information on the inflows and outflows of every account above $600, including breakdowns for cash.
In 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. We believe that this program is costly for all parties, not fit for purpose, and loaded with potential for unintended and serious negative consequences.
Congress is expected to vote on this new proposal in the coming days.
Banking associations across the country are opposed to the proposed legislation and Traditional Bank shares the same concerns. The proposal raises serious questions about your right to privacy. If you oppose such a proposal, we encourage you to contact your lawmakers at this link provided by the American Bankers Association: aba.social/ContactCongress.
Click to read the full letter from the coalition representing over 40 Banking and Business associations.