Requiring banks to give the IRS data on account inflows and outflows would complicate tax enforcement and provide only limited benefits, BPI, ABA and other financial trades wrote in a letter to the Senate Finance Committee’s Subcommittee on Taxation and IRS Oversight this week. The additional reporting requirements, proposed by the White House to target tax evasion and fund a broad childcare spending plan, would have privacy and fairness implications and could put financial institutions in an untenable position with their account holders, the letter states. A more effective approach would be to boost IRS funding to facilitate targeted audits of questionable tax returns, it says.
You Might Also Be Interested In...
Bank Capital and Stress Testing CECL and Capital Relief: A Choice Between Doing the Right Thing for the Right Reason or the Wrong Thing Based on a Misunderstanding
Regulatory Reporting and Accounting BPI Statement in Response to HFSC Markup of the “Greater Supervision in Banking Act of 2021”
Consumer Affairs The CFPB Must Collect Small Business Lending Data from All Financial Institutions to Further Fair Lending Objectives
Regulatory Reporting and Accounting Financial Trades Call on Federal Reserve to Clear Up Ambiguities in Liquidity Reporting Proposal and Provide Adequate Time to Implement Changes
Regulatory Reporting and Accounting Current Expected Credit Loss Methodology and Loan Growth: Evidence from the COVID-19 Event
More Posts by This Author
Consumer Affairs The Time Is Now: 30 Best Bank Practices to Help Improve Outcomes In Black Communities
Security Vote on NDAA Cyber Amendment Signals House Commitment to Strengthening National Cybersecurity
Security OFAC’s Updated Advisory on Ransomware Wisely Manages Fine Line and Encourages Strong Cybersecurity Practices
Security Champion Consumers’ Ability to Access Their Financial Data, and Preserve Their Right to Security and Privacy
FinTech & Innovation BPI Statement Before House Task Force on Financial Technology on Consumer Consumers Access to Personal Financial Data