Idaho Sen. Mike Crapo held a roundtable discussion with bankers and other business leaders in Boise on Tuesday at which he decried proposed new IRS reporting rules for financial institutions as an invasion of Americans’ privacy.
“I think this is the biggest violation of personal privacy that has ever even been proposed, let alone enacted, by the United States government, and it’s something that every American ought to be incredibly worried about,” Crapo declared.
The proposal from the Biden Administration, outlined as one of myriad proposals regarding taxes and revenue in a 114-page “green book” published by the U.S. Treasury in late May, proposes to require banks to report to the IRS total gross inflows and outflows each year for all accounts containing more than $600. It hasn’t been turned into a legislative or regulatory proposal yet, but Senate Finance Committee Chairman Ron Wyden, D-Oregon, is looking instead at a reporting threshold of $10,000, excluding the account-holder’s total wages or other income, such as Social Security, that’s already reported to the IRS.
“People who earn a paycheck already have their wages reported to the IRS by their employers,” Wyden said in a recent statement. “That’s why working people voluntarily pay the taxes they owe. It’s wealthy business owners who are on the honor system. They earn income that isn’t reported to the IRS by an independent third party."
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