AmBA's Nichols Calls for Banker, Customer Letters on IRS Reporting Issue
September 13, 2021
ABA President and CEO Rob Nichols emailed bank CEOs Friday urging grassroots action on the controversial proposal to expand mandatory IRS reporting on bank account transactions. With House committee votes on plan expected as soon as tomorrow, Nichols noted that “right now is the best window to change congressional leaders’ minds about this provision and keep it out of the spending bill.”
“This yet-to-be-fully-defined proposal would supposedly improve tax compliance by a very small percentage of high-net-worth individuals, but collecting information from essentially every account in the United States is hardly targeted to this purpose,” Nichols added. “Moreover, it would come at a truly massive cost to the banking industry and to individuals and small businesses in increased tax preparation fees. Even worse, it would heighten consumers’ concerns about the privacy of their banking relationships.”
While nearly 20,000 bankers have already contacted lawmakers, Nichols called on bankers who have not yet done so to participate—and he shared a link and social media posts banks can use to engage their clients on the issue as well. “Given the volume of their personal data that would be transmitted to the IRS under this proposal, they have just as much a stake in this as bankers do,” he wrote.
Click here to send a letter as a banker.
Click here to share the customer letter and related resources.