If passed, the proposal would require financial institutions like ours to report to the IRS the inflows and outflows on personal and business accounts, regardless of customer consent. While there is still discussion on the account balance threshold that would trigger this new reporting requirement, the premise of this proposal has many concerned.
The recommendation by the Department of Treasury and the IRS is aimed at providing the federal government with access to more information for auditing purposes without grounds for possible fraud or tax evasion.
Recent polling conducted by the Independent Community Bankers of America found the majority of voters oppose the proposal because many consider it to be excessive government intrusion when it comes to personal and confidential data.
Here at OlyFed, we have similar concerns that mandating new, broad bank account reporting to the IRS would infringe on the privacy of bank customers, pushing more people away from a banking relationship and overloading the IRS with more personal information about American citizens than it can possibly process or keep safe from a data breach.
We share these details with you because we value your business and privacy and want to make sure you have all the information you need regarding your finances and your money. If you want more information or if you want to make your voice heard by policymakers, visit banklocally.org/privacy.
Please contact us if you have any questions. Thank you for your trust and for choosing OlyFed. We look forward to continuing to serve you and our community.