BIRMINGHAM – US Senator Tommy Tuberville (R-AL) ‘s (R-AL) efforts to ban a controversial Internal Revenue Service (IRS) policy proposed by the Biden administration have sparked increased interest from consumers and banking executives .
The junior senator from Alabama held a press conference on Tuesday with representatives of various associations and financial institutions promoting Tuberville’s “Protecting Financial Privacy Act”.
If passed and enacted, the legislation would put an end to a recently proposed IRS policy that allows the tax collection agency to access the banking activity of Americans in excess of $ 600. The administration’s proposal would require financial institutions to record these transactions and report them to the US Treasury Department’s Financial Crimes Enforcement Network.
Currently, only cash transactions over $ 10,000 must be reported to the federal government. The IRS’s new proposal drastically lowers this threshold and would expand its scope to include non-monetary transactions.
The first-year senator introduced his bill to the US Senate for consideration last week and asked for unanimous consent to allow the legislation to pass in its entirety. Senate Democrats quickly rejected Tuberville’s motion, banning the legislation from going any further.
The senator expressed his belief that opposition to the proposal is bipartisan, saying it would have a negative effect on all consumers, regardless of their class.
âI think it’s so important to the American people and everyone in the state of Alabama, I don’t care who you areâ¦ it’s something that I think is going to really hurt our country and to our privacy – it’s the IRS, “Tuberville advised regarding the proposal. “This administration wants to arm the IRS more and more, they are already armed enough, they already have enough of our information.”
“Now they are trying to pass a bill to hire 80,000 to 100,000 more IRS agents,” Tuberville said, further stating that he believed the massive hiring wave was an attempt to l agency to seek funds to allocate to the administration. ambitious spending program.
Tuberville warned of the cost consumers would be forced to absorb if the IRS targets their banking business.
âThey’re going to have a book about you as thick as you can imagineâ¦ we don’t need the IRS to mind our business anymore,â he said. âWhat’s also happening is that if they think you owe them money, they’re going to audit you. Then you have to hire an accountant or a lawyer and it will cost you a lot of money.
– Dylan Smith (@DylanSmithAL) 12 October 2021
“This is basically a tax on the American people … a way to raise money [for] great government to go into our business and we don’t need that to happen, âTuberville said. âSo I launched this bill called the Financial Privacy Protection Act to say enough is enough. “
First Bank of Alabama representative Chad Jones praised Tuberville for his efforts to block the proposal, which he called a “fishing expedition for the $ 3.5 trillion infrastructure bill.” Jones then highlighted what he sees as the importance of protecting the privacy rights of citizens under the Fourth Amendment.
Echoing Jones’ sentiments, Steve Swofford, a representative for the Alabama Credit Union, said consumers opposed the “intrusive” proposal from the IRS.
âWe hear from our members, we got them involved from the start and they tell us they don’t trust the government to collect this information and use it properly,â Swofford said.
Scott Latham of the Alabama Bankers Association called the administration’s proposal “un-American.”
âWhen you think about the proposal itself, something that comes to my mind is that it’s just plain anti-American, it’s unprecedented,â Latham said. He then called the proposal a “privacy-damaging intrusion” and further said consumers had expressed concerns about the measure.
Grace Newcombe, director of federal advocacy for the Alabama Credit Union Association, pointed out the disproportionate impact the proposal would have on local credit unions compared to that of large investment banks.
“The IRS reporting proposal announced by the Biden administration places a significant burden on our state’s credit unions, which already comply with state and federal regulations,” Newcombe explained. She added that it would be “almost impossible” for small credit unions to effectively comply with the proposal due to the lack of resources, which she said large financial institutions have.
Dylan Smith is a writer for Yellowhammer News. You can follow him on Twitter @DylanSmithAL