Bankers in Tuberville criticize Biden's plan to require banks to report $600 transactions to IRS every year
Sen. Tommy Tuberville met with Alabama bankers outside Protective Stadium in Birmingham on Tuesday to criticize a Biden administration plan for requiring banks to report transactions of $600 or more to the Internal Revenue Service.
Tuberville introduced a bill last month titled the Protecting Financial Privacy Act, and several banking industry officials were on hand on Tuesday to support it.
Currently, banks must report transactions valued at $10,000 or more to the federal government. Lowering the threshold to $600 would be a burden on banks and credit unions and an invasion of privacy, according to several banking industry officials.
Steve Swofford, CEO of Alabama Credit Union, stated, We support the senator; we support his efforts to limit the IRS intrusion on the accounts of consumers.
Scott Latham, president of the Alabama Bankers Association, stated, It is a very detrimental intrusion into privacy.
Chad Jones, CEO of First Bank of Alabama in Talladega, stated, This administration is proving that their view is that every American bank account holder is guilty until proven innocent, adding that he is convinced that each American citizen is innocent until proved guilty. Thats the burden they want to place on us, they add.
Grace Newcombe, the Alabama Credit Union Association's director of federal advocacy, called the $600 reporting threshold too burdensome. The proposed IRS reporting requirement by the Biden administration would put a heavy burden on our states credit unions, she added. Forcing credit unions to comply with this additional reporting requirement would be expensive for all credit associations and would become nearly impossible for small credit cooperatives, which lack the dozens of compliance lawyers and staff that some larger institutions employ.
Tuberville said Democrats are looking for methods to finance their spending proposals, including a proposed $3.5 trillion infrastructure bill that is currently pushing its way through Congress.
Tuberville stated, They are looking for ways to pay for this bill." If theyre going to pay for it, they've got to tax the American people. This is one way they may accomplish it.
Tuberville believes that the IRS would need thousands of new agents to examine the financial information provided by banks, resulting in more audits for Americans.
Any deposit or anything you buy goes straight to the IRS to give them a book on you, Tuberville said. To make more money off taxes, auditing is the best way.
Tuberville's bill has so far been blocked by Senate Democrats.
Tuberville stated, Were just trying to exert pressure on the Democrats, saying the American people dont want it.
The Treasury Department estimates that the measure will generate about $460 billion over ten years.
Nancy Pelosi, the House Speaker, defended the idea at a press conference on Tuesday, saying that the $600 figure is negotiable.
Yes, there are worries that some people have, but if they are breaking the law and not paying their taxes, one way to track them is through the banking measure, Pelosi said. Thats a negotiation that will continue as to what the sum will be, said Henrik.