WASHINGTON (WTVO) — President Biden’s American Families Plan will require financial institutions to report personal transactions of $600 or more to the IRS.
Currently, financial institutions report your data after you make a transaction of $10,000 or more.
The U.S. Treasury Department says they’re making this change to cut down on tax evasion, estimating it will generate $460 billion.
There has been controversy over this new proposal as people are concerned about their privacy as well as the costs it will have on banks.
“The requirements of this proposal would impose significant compliance costs on our banks, credit unions, and related financial institutions, but also infringe on the privacy of millions of Americans,” Arkansas Congressman Steve Womack said, WTSP reported.
Lorrie Trogden, President and CEO of the Arkansas Bankers Association, says that adding new data compounds the risk of fraud by exposing more customers data.
“The reason people don’t open bank accounts is because they are very concerned about privacy, and this really only compounds that fear and undermines the efforts our Arkansas banks have already made to reach this population, so we think it could have that unintended consequence,” Trogden said to WCSH.
The proposal hasn’t gone into effect as it still has to make its way through Congress.