The Biden administration is proposing a sweeping expansion of tax information reporting aimed at raising revenue to help offset the cost of additional spending programs in the American Families Plan. If enacted, the proposal would require banks to report to the IRS detailed information on the inflows and outflows of every customer account above $600. Every South Dakotan should be concerned with this significant expansion of government data collection and abuse of consumer privacy.

This proposal would create a dragnet — collecting the financial information of nearly every American and every business. It would require significant resources to build, police and maintain. Policymakers must consider how account holder data would be protected and whether a program of this scale and scope infringes on the American people’s reasonable expectation of privacy. The IRS experiences 1.4 billion cyberattacks annually, has had multiple data breaches and continues to deal with the fallout of identity theft and false tax returns. Adding an entirely new set of data will likely compound the IRS’s systemic problem and expose even more taxpayer data.

It is also questionable whether the new reporting requirements would improve the IRS’s ability to identify the high-income tax evaders the administration is apparently targeting. Instead, the proposal appears to capture millions of consumers and small businesses, needlessly increasing their tax preparation costs. The South Dakota Bankers Association believes the IRS should instead focus on better utilizing the significant information it already receives and targeting those it believes are engaging in tax avoidance.

In addition to the challenges associated with protecting this new data, policymakers should consider the potential unintended consequences of leveraging bank relationships to execute such a large-scale and detailed reporting regime. Privacy concerns are already cited as one of the top reasons that individuals choose not to open bank accounts. A reporting regime of this magnitude would potentially undermine our local banks’ efforts to reach populations that are suspicious of working with regulated financial institutions and would push those households on the cusp of banking services back into the unbanked and underbanked population.

The Biden administration proposal would put customer privacy and data security at risk, increase compliance costs to individuals and small businesses and work against important efforts to bring more Americans into the banking system. Congress should say no to this unprecedented invasion of privacy.

This policy is bad for banks, it’s bad for consumers and it’s bad for our country’s future. We must act NOW. Call or email your senators and representatives immediately and tell them this proposal cannot become law: https://secureamericanopportunity.com/take-action/oppose-new-irs-reporting-requirements-take-action.

Karlton Adam is president and CEO of the South Dakota Bankers Association.

(11) comments

VoiceforAll

Where is the democratic outrage on this? Oh that's right, they all believe that the government can do anything they want, remember people, you are losing your freedoms to make a decision about a vaccine, you are losing you freedoms to make a decision about wearing a mask, you are losing your freedoms about having input on what your children are taught in public schools, and this is happening now as well, the government wants to see your bank account transactions. They are using mandates to take your freedoms, not even bothering to make laws, and then the laws they are trying to pass take even more of your freedoms, all while the democrats stand idly by watching and encouraging such behavior. How do any of you justify things like this? You are so blinded by party before anything else that you are willing to give up your freedoms and your privacy to this tyrannical government. Stand up people for freedom, stand up for privacy, things I never thought I would have to fight for in the land of the free, yet the democrats what to change all of that.

SoDakD

😱🙄😂

Chicken Little

The Sky is Falling‼️ The Sky is Falling‼️

E pluribus

Trump supporters attacked our Capital on January 6 in an attempt to prevent a democratic transfer of power.

The Republicans - almost to a man and women - excuse or ignore this.

They certainly don’t support finding out what actually happened and are throwing up as many roadblocks as they can to prevent discovering the truth.

To borrow a phrase or two from Mr. Voice “all while the [REPUBLICANS] stand idly by watching and encouraging such behavior.”

In America a peaceful transition of power was always among those “things I never thought I would have to fight for in the land of the free, yet the [REPUBLICANS] want to change all of that.”

VoiceforAll

Jan 6th, Jan 6th. Trumps fault, Trumps fault, women are men, women are men, men are women, women are men, $3.5 trillion = $0, $3.5 trillion = $0, someone else's fault, someone else's fault, DOJ threatening parents, DOJ threatening parents, Fauci lies, Fauci lies, Jen Psaki lies, Jen Psaki lies, get the shot, get the shot, wear a mask, wear a mask, birthing people, birthing people, CRT, CRT, Afghanistan, Afghanistan, babbling confused president, babbling confused president, socialism, socialism, gas prices, gas prices, inflation, inflation. All fun and games, right democrats?

E pluribus

Mr. Voice, even if I were to interpret everything as you do, I’d still say none of it compares to an assault on our Capital in an attempted coup to stop the peaceful transfer of power.

That was much more than “fun and games.”

QgopFromnowon

Mr. E pluribus, you are one of those that our January 6 movement intended to remove from our electorate. We’ll do better next time.

Yet I advise you to quit your dialogue with Mr. Voice. You’re unwittingly being USED.

You may be sincere in your misguided world view, but he is cynically and cowardly using you to hide his true RINO bonafides.

Trump is telling us the stolen election is the number one issue and we should sit out the 2022 midterms and the 2024 presidential election if the fraud isn't solved.

But Voice keeps ignoring him. He thinks we’re fooled by his desperate, repetitive, long-winded diatribes against Democrats. And you’re helping him.

Again, you’re being used.

WWG1WGA

SoDakD

👍

VOICE for VoiceforAll

Voice, you OK? You seem unsettled, spitting out Fox News sound bites in double time.

Jolly Roger

It’s pretty clear who’s “babbling and confused” at the moment.

You should try to post your comments when you’re sober, Snookie

E pluribus

Our politics can’t agree on much, Mr. Voice. But here - for once - I agree with your Mr. Trump.

The most important issue is trusting that our elections are secure and fair. And Trump’s telling us the election was stolen from him.

It’s the number one issue he says. And we should sit out the 2022 midterms and the 2024 presidential election if the fraud isn't solved.

Yes. If our Presidential election really was fraudulent, we have a big problem. Pollsters already say some 40% of Americans believe or suspect that the election was stolen.

They may not trust another election if Trump isn’t reinstated.

But instead - if the voting legislation sweeping across the country amounts to voter suppression - then we have a different, but similar problem.

The folks who get disenfranchised won’t trust another election either.

Yet, in one practical aspect - despite all the moaning and wailing - this is a simple organizational problem.

A group - whether it’s a small town church or a nation on the world stage - can’t solve its policy issues until a clear majority accepts the leadership.

As the man says, what can you do when “we’re all connected, but no one is in charge.”

But beyond the practical organizing, Americans have usually aspired to make our democratic experiment work. And secure elections are essential to our experiment.

In a way this simplifies things.

All the other issues come after this one.

Welcome to the discussion.

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