Proposed bill could offer more bank information to IRS
LITTLE ROCK, Ark. (KAIT) - A proposed bank account reporting law is getting a lot of push back across the country, including from banks here in Arkansas.
President Biden’s proposal would have banks send customer information to the IRS for any transaction of $600 dollars or more.
The goal is to target the top 1% for tax evasion.
Arkansas Bankers Association President Lorrie Trogden says that the $600 amount would impact almost every American, defeating the purpose.
“Then they can’t utilize that data to its fullest potential because they just don’t have the ability to do so. And everything they’re claiming they want to do, they could do with the data they’re currently getting,” said Trogden.
Trogden says not only are several bankers associations against the proposal but customers are too.
She said the main concerns are customer privacy, cyber-attacks, and the cost to banks.
If it becomes law, banks would have to use an entirely different system, and Trogden says that could harm smaller community banks.
Right now, this proposal is only in the discussion phase, but Trogden says several bankers associations are calling state legislatures to express concerns.
Arkansas lawmakers have also said they’re against this proposal.
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