By Josh Claywell
If members of Congress have what they want, the IRS could potentially gain access to the bank account information of millions of people across the United States.
As part of the American Families Plan, President Joe Biden’s administration proposes to require all financial institutions to report to the IRS all transactions of all business and personal accounts valued over $ 600.
According to the managers of the Hodgenville banks, this would put undue stress on each institution.
“As a financial institution, one of our top priorities is to protect our customers’ data, with privacy at the heart of our core values,” said Deena London, Managing Director of Magnolia Bank. “The reporting burden proposed by the IRS would impact the privacy and security of customer data at its highest level. There are additional consequences that could have an even greater impact on small business owners, but our biggest concern is a breach of trust in the relationships we are proud of as a community bank.
Lincoln National Bank President Doc Meredith said the most worrying thing is that not many people know what is being proposed by Congress.
And while the proposal is just that, he said it was important that financial institutions get ahead of it as best they can.
“Although there is no law yet, we want our clients to be aware of current legislation so that they have the opportunity and the information they need to express their views to our legislators,” said he declared.
The best way to do this is to reach out to elected officials and urge them to vote against the proposal, said Katie McDowell, CEO of Abbound Credit Union.
She told the Credit Union National Association; The Kentucky Credit Union League and all Kentucky credit unions do not support additional reporting to the IRS. And if customers ask about it, McDowell – like others in the community – has told them to be aware of what’s going on with the proposal.
“This aspect of the bill is still under discussion,” she said. “You can have an influence. If you wish, please share your thoughts with your elected members of Congress. “
So far, bank officials say they haven’t heard much from their customers about the proposal.
But they don’t want anyone to be worried or panicked just yet, because the proposal might not even get started.
“With all due respect to our government agency, we believe that the ongoing monitoring of personal and business accounts with a balance of $ 600 or more is simply intrusive,” Meredith said. “Sharing this level of detail is concerning in many ways. As a financial institution, our role is to serve our clients and their financial needs while protecting their privacy, not to act as an extension of the Internal Revenue Service. “