According to a recent report from Newsmax “The largest U.S. banking lobby groups banded together on Friday to make another push to kill a proposed bank account reporting law being drawn up as part of the congressional reconciliation package.”
The group, led by the American Banker’s Association, calls the Biden admin proposal an “overreach” and warned it would make U.S. banks a “police force for the IRS.”
“Banks are in the business of extending credit, they don’t want to be using all their time, money and resources to be the police force for the IRS,” said Paul Merski of the Independent Community Bankers of America.
"Banks are in the business of extending credit, they don't want to be using all their time, money and resources to be the police force for the IRS," said ICBA's @PMerski. Read more on what President Biden's tax plan means for #CommunityBanks ⬇️https://t.co/rOhd2hbj4v
— Independent Community Bankers of America (@ICBA) May 11, 2021
In a letter to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy, the lobby groups said the proposal would create “reputational challenges” for large financial services firms, increase the cost of tax preparations for Americans and small businesses, and create serious “financial privacy concerns.”
“We urge members to oppose any efforts to advance this ill-advised new reporting regime,” the groups said in the letter.
“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 proposed domestic account reporting requirement is becoming an important issue for the banking industry, which is opposed to various Dem-favored tax reporting changes.