Sen. Chuck Grassley (R-Iowa) today joined every Republican member of the Senate Finance and Banking Committees in urging Senate Majority Leader Chuck Schumer (D-N.Y.) to abandon the Biden administration’s unprecedented proposal to expand the reporting of the private, confidential financial data of law-abiding Americans from financial institutions to the Internal Revenue Service (IRS). The Administration’s proposal would force financial institutions to report customer information such as gross inflow and outflow information and transaction information directly to the IRS.
“This proposal represents a radical departure from existing reporting requirements associated with national security and actual taxable events. Placing more requirements on financial institutions would not only adversely affect these institutions and their customers – who ultimately pay the price for compliance costs – but it would also inundate the IRS with layers of new paperwork and taxpayer data that is either redundant or irrelevant to improving federal tax compliance, as account inflows and outflows are not taxable events. Simply flooding the IRS with more data and burdening taxpayers, financial institutions, and already overwhelmed IRS service centers with more paperwork is of questionable value, especially when the IRS does not effectively use data already in its possession,” the senators wrote.
The letter is signed by Sens. John Thune (R-S.D.), Mike Crapo (R-Idaho), Pat Toomey (R-Pa.), John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), John Boozman (R-Ark.), Richard Burr (R-N.C.), Bill Cassidy (R-La.), John Cornyn (R-Texas), Kevin Cramer (R-N.D.), Steve Daines (R-Mont.), Bill Hagerty (R-Tenn.), John Hoeven (R- N.D.), John Kennedy (R-La.), James Lankford (R-Okla.), Cynthia Lummis (R-Wyo.), Jerry Moran (R-Kan.), Rob Portman (R-Ohio), Mike Rounds (R-S.D.), Ben Sasse (R-Neb), Tim Scott (R-S.C.), Richard Shelby (R-Ala.), Thom Tillis (R-N.C.) and Todd Young (R-Ind.).