Washington, D.C. (July 28, 2021) — The Independent Community Bankers of America (ICBA) and a broad coalition of business groups today expressed strong opposition to a Treasury Department proposal that would require financial institutions to report information on customer bank accounts to the IRS.
In a joint letter to congressional leaders, the coalition objected to the broad, untargeted nature of the proposal, which would require financial institutions to report to the IRS on the deposits and withdrawals of all business and personal accounts with a balance of more than $600.
“The Treasury Department’s proposal to mandate blanket financial account reporting to the IRS would intrude on consumer privacy, create data security risks to taxpayers, undermine efforts to reduce the unbanked population, and create taxpayer complexity and confusion,” ICBA President and CEO Rebeca Romero Rainey said today. “Community bankers and other small businesses urge Congress to reject the Treasury proposal and explore less intrusive means of reducing the tax gap.”
In their letter, the groups said:
The joint letter was signed by:
The letter follows a separate joint letter to Congress from ICBA’s Minority Bank Advisory Council expressing concerns with the plan. More information is available in a recent ICBA fact sheet on the proposal.
The Independent Community Bankers of America creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.
With nearly 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ more than 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, over $4.4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.