09/21/2021: IMPORTANT IRS PROPOSAL
A New IRS Proposal Could Affect Your Account!
Congress and the Biden Administration are proposing an increase in the reporting of consumer information aimed at raising revenue to help offset the cost of additional spending programs in the American Families Plan. The proposal (if enacted) would require banks to report to the Internal Revenue Service (IRS) detailed information on the inflows and outflows of every customer account above $600.
Congress is expected to vote on this new proposal in the coming days.
Such an unprecedented confiscation of your personal financial information raises a number of concerns.
- The proposal would violate YOUR personal privacy by forcing banks and other financial institutions to provide the government with information that has nothing to do with taxable activity on your account.
- Financial Institutions, like Vintage Bank Kansas, who are primarily located in rural and smaller communities would face a new and expensive regulations that would make it difficult to serve our communities in the same manner in which we have previously served them.
- The data systems the IRS uses to store and secure the information they receive are decades old and have already been compromised in recent years. The addition of this type of data would only increase the likelihood of a future breach of your personal financial information.
What You Can Do
At Vintage Bank Kansas, we believe it’s our duty to inform you when legislation is being discussed that could directly affect you.
Please considering lending your voice and opinion to this important effort. Click the link below to learn more and send an email to your U.S. Representatives. Tell Congress to reject this new IRS reporting!
UPDATE: October 19, 2021
The proposal was revised to set a $10,000 reporting limit with certain carve-outs – no details have yet been provided on how flow calculations would work.
In response, Independent Community Bankers of America, or ICBA said “The proposed tweaks-would benefit hardly any taxpayers, make the policy more difficult to implement, and do nothing to address the proposal’s privacy, due process, and data security concerns.”