The American Families Plan proposal from the White House includes new IRS reporting mandates that would require banks and credit unions to report all customer account activities over $600.
The new requirements raise workload, cost, and privacy concerns for small businesses.
Part of the plan requires financial institutions to report transactions of $600 or more in personal and business accounts, regardless of their tax bracket or whether the account holder gives permission.
According to the White House, the goal is to catch any tax evasion happening among high-income earners. But the concern is the amount of workload this puts on our local banks and credit unions, the privacy issues on individuals and businesses, as well as the projected increase in costs for small businesses for tax preparation.
To contact your Congressmen and for more information visit Consumer Alert from ICBA.