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Murante Joins with 22 Financial Officers to Express Concerns Over Proposed Invasive IRS Proposal
September 21, 2021 Lincoln, NE
Treasurer John Murante today joined with 22 other financial officers from across the nation in a letter to President Joe Biden and Treasury Secretary Janet Yellen to express concern that the recent $3.5 trillion spending proposal from the Biden administration will require financial institutions to turn over private citizens’ personal bank account information to the IRS if they exceed $600 of inflows or outflows in an account. 

Such reporting requirements are not only a major infringement on well over 100 million Americans with bank accounts, but would impose significant compliance costs on banks, credit unions, and other financial institutions including states which offer 529 college savings plans, costs that most likely will be passed on to the public.  

“This could lead to a tremendous invasion of privacy the likes of which our country has never seen. Millions of law-abiding Americans would suddenly have their bank accounts opened to federal investigators for no more reason than buying a refrigerator. This is simply unconscionable. To make matters worse, under this proposal, saving for college could put an American family on the IRS’s radar,” Murante said. 

Financial institutions currently report a tremendous amount of data to the IRS, and no evidence has shown that the proposed requirements would substantially aid the IRS’s efforts to close the tax gap beyond the information already at their disposal.  

Not only would such an overly comprehensive IRS database require significant resources to build, maintain, and protect, but it would make the personal financial data of millions of Americans vulnerable to attack. The IRS is a constant target of cyber criminals, experiencing millions of cyberattacks annually. This proposal will put a constant strain on customer privacy, data security and overall safety of the banking system.  

“As Treasurers and Auditors we want to join the many state bank and credit union associations who oppose this type of intrusive action. We urge you to consider the negative impacts this initiative would have on individuals and small businesses in all of our communities, along with the negative impact on local financial institutions,” the letter reads. 
https://archive.md/LM01e 

The letter can be found below:
September 20, 2021

President Joe Biden
The White House
1600 Pennsylvania Ave
Washington, DC 20500

Secretary Janet Yellen
U.S. Dept. of Treasury
1500 Pennsylvania Avenue,
NW Washington, D.C. 20220

Dear Mr. President & Secretary Yellen:

As State Treasurers, Auditors and financial officers, we are joining together with our local citizens’ community banks and credit unions to express our opposition to any proposal that would require financial institutions to turn over private citizens’ personal bank account information to the Internal Revenue Service (IRS) if they exceed $600 of inflows or outflows in an account.

We do not believe the federal government should give the IRS the unprecedented and unconstitutional power to peer into law abiding citizens’ private financial accounts. This would be one of the largest infringements of data privacy in our nation’s history and is a direct assault on the financial disclosures of all Americans.

This would impact well over 100 million Americans who currently have a financial account. In the last year alone, over 127 million Americans qualified for the CARES (Coronavirus Aid, Relief, and Economic Security) Act which deposited funds in excess of $600 into their financial accounts. Funds deposited included $600 weekly boost in unemployment benefits from the Federal Pandemic Unemployment Compensation Program (FPUC) for the 25 million Americans who lost their job during the pandemic, roughly $3,200 in Economic Impact Payments (EIP) and most recently Advanced Child Tax Credit Payments to millions of Americans.

Simply put, this is a direct assault on all Americans of all economic demographics and includes all business and personal accounts.

There is zero quantitative or qualitative evidence that this proposed measure will aid in collecting taxes from tax evaders.

The IRS is a constant target of cyber criminals and in recent years has suffered significant breaches. This reporting requirement will consistently put a large amount of sensitive financial data in transit to the IRS and will be at constant risk of cyber-attack. The IRS does not currently have the capability to effectively utilize or protect this data.

If passed this will be one of the largest and most continuous data mining exercises against Americans in our history and will put a constant strain on customer privacy, data security and overall safety of the banking system.

Designing a system to track and report all account inflows and outflows of $600 or more for every customer will have a devastating cost impact on small community banks and credit unions.

A goal of the banking industry is to reduce the number of unbanked Americans. A financial account is an important step in creating a positive relationship with financial institutions and is a steppingstone to financial health. Requiring financial institutions to police accounts and constantly report to the government may create a lack of trust, causing many to close financial accounts increasing the number of unbanked Americans.

There are no guardrails in place to prevent any abuse of this information by the IRS or other government actors.

This proposal may cause massive increases in tax preparation costs for America’s small businesses which are the heartbeat of our economy.

As Treasurers and Auditors we want to join the many state bank and credit union associations who oppose this type of intrusive action. We urge you to consider the negative impacts this initiative would have on individuals and small businesses in all of our communities, along with the negative impact on local financial institutions.

Sincerely“,
See the 23 signatures and the original letter here: https://sfof.com/wp-content/uploads/2021/09/SFOF-letter-to-President-Biden-and-Secretary-Yellen-.pdf

Transactions of over $10,000 are supposed to be reported already:
https://en.wikipedia.org/wiki/Currency_transaction_report

The amount should be to be reported should raised, not lowered. As pointed out in this article, $10,000 was worth a lot more in 1970, than today. The article says $70,000:
https://www.americanthinker.com/blog/2021/09/biden_wants_to_get_into_your_bank_account.html

This, of course, will allow the Federal government to monitor how much Americans spend on rent, food, etc., and make certain they can steal the maximum possible, even if it means that Americans freeze, starve, etc. Meanwhile, everything is free for unvetted migrants – housing, food, medical care. And, Americans are supposed to pay for it. It is worth noting that Americans unknowingly paid for the research that created the pandemic; funded the research that created the experimental vaccine, which is being forced upon them, but not upon the new migrants. The American Revolution started as a tax revolt.