COLORADO SPRINGS, Colo. (KRDO) – Strong opposition coming from both political parties to the new tax information reporting proposal by the Department of Treasury, If approved, the proposal would impact many Americans with bank accounts.
The proposal will require providers of financial services to track and submit to the IRS information on the inflows and outflows of every account above a threshold of $600 during the year.
According to some in the financial industry, this proposal would create serious financial privacy concerns, increase tax preparation costs for individuals and small businesses, and create significant operational challenges for financial institutions.
“This is a very slippery slope. It does not matter which side you come down on politicly - this really is putting the banks into a role of investigation and potentially enforcement and turning over all that information to the IRS which just creates a big phishing expedition for them… not a big fan of that,” Brad Harvey said.