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ABA: The American Bankers Association
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ABA Joins Business and Financial Groups in Opposing Proposed Tax Information Reporting Requirement

WASHINGTON —

The American Bankers Association today joined more than 40 organizations representing a cross-section of financial and business interests in sending a letter to Speaker of the House Nancy Pelosi, Minority Leader Kevin McCarthy and all members of the House of Representatives strongly opposing a proposal under consideration as part of the reconciliation package that would establish an expansive new tax information reporting regime. This misguided proposal would directly impact almost every American and small business with an account at a financial institution. 

As described by the Department of Treasury, the proposal would require financial institutions and other providers of financial services to track and submit to the IRS information on the inflows and outflows of every account above a de minimis threshold of $600 during the year, including breakdowns for cash.

“While the stated goal of this vast data collection is to uncover tax dodging by the wealthy, this proposal is not remotely targeted to that purpose or that population,” the groups wrote. “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.”

The groups also expressed concern that the proposal raises significant privacy concerns that could harm efforts to reduce the number of unbanked Americans. 

“Privacy concerns are cited as one of the top reasons why individuals choose not to open financial accounts and participate in the financial system,” the groups wrote. “This proposal would almost certainly undermine efforts to reach vulnerable populations and unbanked households.” 

ABA, along with the other cosigners, urge members to oppose any efforts to advance this ill-advised new reporting regime.

Click here to read the full letter. A full list of signatories is below:

American Bankers Association
Consumer Bankers Association
SIFMA
Independent Community Bankers of America
Air Conditioning Contractors of America (ACCA)
National Association for the Self-Employed
Global Cold Chain Alliance
Specialty Equipment Market Association (SEMA)
ACA International
Independent Insurance Agents & Brokers of America
Independent Electrical Contractors (IEC)
AICC, The Independent Packaging Association
National Stone, Sand & Gravel Association
Credit Union National Association
Electronic Transactions Association
Southwest Cable Communications Association
National Independent Automobile Dealers Association
Decorative Hardwoods Association
Energy Marketers of America
Brick Industry Association
Pet Industry Distributors Association
National Association of Professional Insurance Agents
American Financial Services Association
Community Development Bankers Association
Commercial Food Equipment Service Association
Innovative Lending Platform Association
National Bankers Association
National Association of Federally-Insured Credit Unions
American Land Title Association
Auto Care Association
International Franchise Association
Promotional Products Association International
Mortgage Bankers Association
America's SBDC
Mid-Size Bank Coalition of America (MBCA)
Manufactured Housing Institute 
National RV Dealers Association
National Federation of Independent Business (NFIB)
American Hotel & Lodging Association (AHLA)
National Association for Surface Finishing
National Association of REALTORS®

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About the American Bankers Association

The American Bankers Association is the voice of the nation’s $22.8 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard nearly $19 trillion in deposits and extend $11 trillion in loans.

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