Here’s my latest IWF blog post on the latest IRS proposal news:
A handful of Congressional Democrats attempted to kill a controversial IRS proposal to track the inflows and outflows of private bank accounts. However, despite their best efforts, the latest Build Back Better plan with a new whittled down price tag of $1.75 – $1.85 trillion still keeps this revenue raiser as a way to find pennies under the government cushion.
21 House Democrats, led by Rep. Cindy Axne (D-IA), urged House Speaker Nancy Pelosi (D-CA) and Ways and Means Chairman Richard Neal to nix the “improvising tax enforcement” provision from reconciliation talks. This proposal originally stemmed from Treasury Secretary Janet Yellen’s May 2021 American Families Tax Plan Compliance Agenda plan.
“We write today to express our concern about the new tax information reporting regime proposed by the Department of Treasury under consideration for inclusion in the reconciliation package. This proposal would require information on the gross annual inflows and outflows of all types of financial accounts in the United States (e.g., savings accounts, checking accounts, loans, investments) to be submitted to the Internal Revenue Service (IRS) annually. We respectfully request that this proposal be withdrawn from further consideration in favor of a more targeted approach,” the letter began. “While the intent of this proposal is to ensure all taxpayers meet their obligations—a goal we strongly share—the data that would be turned over to the IRS is overly broad and raises significant privacy concerns. We have little information about how the IRS plans to protect or use this massive trove of data. Americans expect their bank or credit union to safeguard their financial information. This proposal would erode trust in financial services providers.”