Democrats to raise cap on Biden’s IRS transaction data proposal
Banks are currently mandated to file currency transaction reports on all deposits of over $10,000 to the Financial Crimes Enforcement Network, a division of the Treasury Department. The FinCEN prevents money laundering and crime but doesn’t monitor the reports for tax purposes.
However, banks and credit unions fear the Biden proposal to report all transactions over $600 to the IRS would be overly burdensome, taking up crucial time and money.
“From a bank perspective, the administrative challenges and complexities of having a $600 annual threshold may not achieve the policy goals of reducing tax avoidance,” said Scott Talbott, senior vice president of government relations at the Electronic Transactions Association. “At $600, the squeeze may not be worth the juice.”
There are also privacy concerns, particularly given that a threshold as low as the proposed $600 would target nearly everyone. More than 140 Republican lawmakers sent letters to Neal, House Speaker Nancy Pelosi, Treasury Secretary Janet Yellen, and IRS Commissioner Charles Rettig pushing back on the notion.
“Not only would such an overly comprehensive IRS database require significant resources to build, maintain, and protect, but it would make the personal financial data of millions of Americans vulnerable to attack,” they said in the letter.
https://news.yahoo.com/democrats-raise-cap-biden-irs-110000327.html