Take Action: Contact Congress to Oppose Bank Reporting to the IRS
on Monday, September 27, 2021
As a true community bank dedicated to serving the people and businesses of Central Iowa, we’d like to inform you that Congress is considering a plan to require financial institutions to report detailed information on customer bank accounts to the IRS, raising serious questions about your right to privacy.
Simply put, if enacted, the proposal calls for banks and other financial institutions to report to the IRS on all deposits and withdrawals through business and personal accounts above $600. Financial institutions already report data to the IRS through Forms 1099, 1088 and brokerage investment accounts through Form 1099-B.
While we strongly believe that Americans should honor their tax obligations, this proposed legislation raises serious questions about customer financial privacy and IRS data security. 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 respectfully ask you to contact your representative today and express your opposition to any new IRS reporting that leads to increased compliance costs, damages customer relationships, and threatens customer privacy.
FREQUENTLY ASKED QUESTIONS
How does this affect you?
If passed, the proposal would require financial institutions, like ours, to report the inflows (deposits) and outflows (withdrawals) of $600 or more, on all personal and business accounts to the IRS regardless of customers’ consent.
What can I do to make my voice heard?
Join us in telling Congress that proposed IRS bank account profiling is intrusive and indiscriminate for our customers. Click the link here to email your local Congressional representative to share your concerns that this bill creates an unacceptable invasion of privacy and should be voted down.
When could this be enacted?
The timeline is unclear, however, it is currently being debated in Congress.