LUBBOCK, Texas — On Friday, as part of the Biden’s Administration reconciliation deal, the Department of Treasury submitted a proposal that would require banks to submit an annual report on accounts with $600 or more in deposits or withdrawals. The reports will not specify the details of the flow of funds, but the amount involved in the transaction.
American Bank of Commerce’s President and CEO James Arnold said his primary concerns are of the possible repercussions this could have on account holder’s Fourth Amendment rights.
“Allowing the IRS into people’s bank accounts. I think then the next step would be looking at transactional data,” Arnold said. “That’s the concern a lot of folks have with this information is allowing the IRS to look into people’s bank accounts. I think it’s an invasion of privacy.”
According to Texas Tech Law professor Bryan Camp this is an attempt for the IRS to implement tighter regulations to ensure those who don’t report taxable income are held more accountable.
“It helps you be honest to know that there is information flowing to the regulatory authorities, whether they’re local authorities,” Camp said, ”or state authorities or federal authorities. Knowing that helps you do the right thing.”
U.S. House Representative Jodey Arrington said that the language of the proposal is too broad and needs to be more tailored to those who are committing tax evasion.
“There is no due diligence behind this proposal. If one were to have a serious effort underway to go after tax evaders,” Arrington said.” they would use the current data that the IRS already has. This is not a new power that they need. This isn’t a new tool. This is not another dime or dollar of resources.”
While it is currently just a proposal and Congress has not made any final decisions on the legislation, Professor Camp said the direction is to seek out those who are failing to voluntarily cooperate with the United States government.
“Because it’s not fair to someone who’s making $50,000 in wages, it’s just not fair for that person to be reporting their income paying taxes on it,” Camp said, “and yet some other person who gets that same amount of income, but now can hide it, and they don’t pay any tax. That’s just not fair.”