Sunnyside Representative Dan Newhouse says he’s very concerned about the Biden administration’s Internal Revenue Service banking oversight plan. Newhouse joined Rep. Drew Ferguson, as well as all Republican members of the Ways and Means Committee, in introducing legislation banning IRS financial monitoring. This legislation would bar the IRS from implementing any form of the Biden administration’s aggressive banking supervision program. Additionally, Rep. Dan Newhouse joined Rep. Tom Emmer and 200 of his fellow Republicans in sending a letter to U.S. Treasury Secretary Janet Yellen opposing President Biden’s intrusive financial reporting proposal.
“President Biden’s attempt to arm the IRS to ‘close the tax gap’ not only places additional reporting requirements on our local banking institutions, but is a significant privacy issue for an institution that does not. has already failed to protect the data of US citizens, ”said Rep. Newhouse. “This action would set an incredibly dangerous precedent for the amount of power the IRS can hold, and I remain adamantly opposed.”
Read the letter here;
On September 13, 142 members of Congress wrote to you expressing concern over the administration’s proposal to dramatically increase the amount of financial data collected on virtually all Americans. Since then, hundreds of thousands of our constituents have contacted our offices – in addition to every state bank and association of credit unions, and many state financial officers – to voice their opposition to this initiative. Your ministry’s response to these concerns was not only sincere, but also demonstrated how out of touch supporters of this effort are from the serious and genuine concerns millions of Americans have with this idea.
The Treasury Department’s original plan was to require financial institutions and other financial service providers to report to the Internal Revenue Service (IRS) a series of new account data points with annual gross inflows and outflows totaling over $ 600. After receiving pushback from Americans in every state, it has been reported that the administration and majorities in Congress are considering raising the threshold from $ 600 to $ 10,000 (or even higher).
The impact these new reporting requirements will have on tens, if not hundreds of millions of unsuspecting Americans, cannot be overstated. The arbitrary increase in the threshold to $ 10,000, like the most recently proposed, will still apply to people at all levels of the income scale.
Additionally, your September 29 response cited increased transparency, better tax compliance, and increased federal revenues as the primary reasons for this proposal, while failing to substantially address one of our primary concerns: protection. of privacy. The IRS’s history of protecting Americans’ personal information is suspect at best. Not to mention, one of the main reasons so many Americans are unbanked is due to privacy concerns, according to a 2019 survey released by the FDIC.
Your proposal, if passed and regardless of the threshold for compliance, is likely to sow distrust of our financial system due to ongoing and valid concerns about the IRS’s ability to protect privacy and data. financial resources of the American people and potentially expanding the unbanked population.
Finally, after a historic year where banks and credit unions were at the forefront, providing financial lifelines for families, businesses and communities during the COVID 19 pandemic, we cannot stress enough the negative impact that the new additional reporting requirements will have on these. same financial institutions by your proposal. Financial institutions are already reporting a huge amount of data to the IRS, and there is plenty of evidence to show that the IRS needs to do a better job of using the information it already has to close the “tax gap.” The last thing our financial institutions need is another layer of administrative reporting requirements to remove from their day-to-day efforts to deliver the capital that is the lifeblood of Main Street America.
In light of our continuing concerns and your failure to adequately address them, we ask that you drop this proposal and encourage Democrats in Congress to do the same. We need to protect Americans and our financial system, not make it the victim of government excess in the name of increasing incomes.