Senate Finance Committee Ranking Member Mike Crapo (R-Idaho) pushed back against a Biden administration proposal that would require financial institutions to report information on account flows to the IRS.
Crapo: In a statement at a hearing on the IRS budget, Crapo said he opposes turning banks and brokers into government tax collectors and has strong concerns about the IRS collecting such data, noting that some existing reporting is duplicative.
Background: The American Families Plan proposes requiring financial institutions to report to the IRS on account flows, including bank loans, on accounts over $600.
ICBA Position: ICBA strongly opposes the proposal. In a statement and joint letter to the committee and in press reports, including Politico, ICBA has said the plan would create complex new reporting burdens, expose banks to penalties for inadvertent errors, and channel more information into the IRS than it can process.