Bill seeks to prevent IRS bank transaction access

A group of legislators recently introduced a measure that would prevent the Internal Revenue Service (IRS) from gaining access to Americans’ financial transaction information.

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U.S. Sens. Tim Scott (R-SC), Mike Crapo (R-ID) and Pat Toomey (R-PA) and other Senate colleagues co-sponsored the Prohibiting IRS Financial Surveillance Act, which would bar the IRS from implementing a plan to provide the agency access to every working American’s financial information by requiring financial institutions to report to the IRS withdrawals and deposits totaling minimally $10,000.

“The Democrats’ plan to allow the IRS to spy on the bank accounts of nearly every person in this country, even those below the poverty line, should be deeply concerning to anyone who values privacy and economic inclusion,” Scott said. “Of the more than seven million American households that are currently unbanked, the majority are low-income, rural, and minority Americans. Implementing the Biden reporting scheme will disproportionately harm those who need greater access to our financial institutions and people living paycheck to paycheck.”

Crapo said every American should be wary of giving the IRS more power into private financial transactions.

“The IRS bank reporting proposal is one of the biggest expansions of the agency’s authority we’ve ever seen and is fundamentally flawed,” he said. “I’m proud to support Sen. Scott’s legislation to stop this proposal in its tracks and protect Americans’ personal, private financial information.”

Toomey said the plan to allow the IRS to monitor Americans’ bank accounts is a dangerous idea.

“Today, the administration wants to know your annual account inflows and outflows,” he said. “What will they demand access to tomorrow? I’m glad to join Sen. Scott and Sen. Crapo in working to ensure this terribly flawed proposal never sees the light of day.”