(The Center Square) – The Oklahoma Bankers Association says that a new federal proposal from the Biden administration that would track bank transactions over $600 and remit that information to the IRS is government overreach.
Adrian Beverage, president and CEO of Oklahoma Bankers Association, told The Center Square that as the proposal is currently drafted, both business and personal accounts would be impacted. The financial institution would have to submit a report at the end of the year for each account with a minimum balance of $600. That report would show the total dollar amount coming into the account and the total dollar amount coming out of the account. The ultimate goal is to catch those who are avoiding paying their taxes.
OBA and the banks it represents are not in favor of the proposal. The tracking threshold is currently $10,000 in cash.
"The government is always seeing how far they can reach into our lives," Beverage said. "We feel bank customers already provide a treasure trove of information to the IRS and this is crossing the line. The IRS is the most targeted organization on the planet for cyber threats. It makes folks nervous enough that the information they already send to the IRS is at risk because of cyberattacks, and they sure don’t want to send them any more information."
Congressman Kevin Hern told FOX 23 that "the IRS continues to encroach on every aspect of the American people’s lives. I have been vocal about my disdain for this provision, and the continued overreach of the federal government, who salivates at every opportunity to tax and regulate its people. There is no place for this intrusion into the intimate financial details of American families.”
If the proposal does take effect, it will place extra work on banks, some that can't afford the additional staff or strain.
"There will be additional costs for banks to upgrade their systems to track and pull this information," Beverage said. "The majority of community banks in Oklahoma don’t have lots of staff. This proposal would require a current employee to add additional tasks, or the bank would have to hire additional staff."
via Oklahoma's Center Square News