PIA has been advocating in opposition to a proposal in the current House reconciliation package that would impose a broad new tax information reporting regime on small businesses throughout the country.
The proposal would require financial institutions and other providers of financial services to track and submit to the Internal Revenue Service (IRS) information on all inflows and outflows, including cash, of every account above a de minimis threshold of $600 per year. In addition to imposing an unnecessary burden on small businesses, this would create tremendous liability for everyone who is subject to it—that is, everyone with a bank account whose balance exceeds $600—by requiring the collection of financial information for over 100 million American households without explaining how the IRS will store, protect, or use this huge mass of personal financial information.
Recently, House Speaker Nancy Pelosi (D-CA) defended Democrats’ controversial IRS bank-reporting proposal, saying the threshold may be increased to $10,000, this tweak would not significantly reduce the scale or challenges associated with this new IRS program. As such, earlier this week, PIA joined with a host of business groups to reiterate our opposition to it.
PIA strongly opposes this provision and is encouraging its members to contact their members of Congress and ask that they oppose it as well. It is imperative that Congress hear your concerns about this burdensome provision as it considers the reconciliation package.
PIA will continue to urge members to oppose any efforts to advance this ill-advised new reporting regime.