POSTED IN ARTICLES ON TUESDAY, OCTOBER 19, 2021
Talk to your elected officials about proposed IRS reporting requirements.
Federal lawmakers are currently considering IRS reporting provisions that would require financial institutions to report additional account-holder information and activity on all personal and business accounts over a specific balance threshold. The current consideration is for all accounts over $10,000. These efforts are aimed at increasing taxpayer compliance, though no evidence has shown that the proposed requirements would substantially aid efforts to close the tax gap.
Veridian opposes this proposed legislation with concern for unintended consequences it could create while also not contributing to its intended purpose:
- Privacy and security - This kind of proposal would make the personal and financial data of millions of Americans vulnerable. The government relies on decades-old data systems that have already been compromised in recent years. Adding to this data increases the likelihood of a future breach.
- Exacerbating the unbanked - Privacy is a primary reason unbanked individuals choose not to open an account at a financial institution, and choose instead to rely on more costly and less reliable alternatives for managing their finances. The proposed regulation is likely to reinforce those concerns and expand our unbanked and underbanked population.
- Regulatory burden on small financials - Small banks and credit unions, especially those in rural and low-income communities, would face unnecessary and expensive regulatory burden that could make it cost-prohibitive to continue serving their small communities.
Veridian employees have been reaching out to our federal legislators with our concerns and asking them not to support additional IRS reporting requirements. If you'd like to join us in expressing opposition to these proposed provisions, use the online resource linked below to learn more and conveniently send one message of opposition to all of your representatives in Congress.