Tax Reporting Proposal Expected to be in House Version of Reconciliation Bill

10/13/21

A controversial provision that would mandate banks to report gross account inflows and outflows to the IRS is expected to be included in a U.S. House budget reconciliation package, according to Speaker of the House Nancy Pelosi. 

Pelosi did not specify a reporting threshold, with Capitol Hill sources indicating the previous $600 trigger could be increased to $10,000. House Democrats are still negotiating details of a final reconciliation package, and no vote has been scheduled at this time. Any final version will have to also clear the U.S. Senate, where some Democrats are pushing for a more restrained package. 

The OBL continues to oppose the tax reporting proposal at any dollar threshold, telling legislators that the "requirements will create unnecessary and expensive burdens for banks and raise the cost of tax preparation for small businesses, but more importantly, they raise serious questions about our customers’ right to privacy." Last month the OBL recruited eight Ohio business trade associations to join the banking industry in pushing back on the Biden administration proposals. The trade groups signed a letter to Senate Finance Committee members Sens. Rob Portman and Sherrod Brown urging them to oppose the plans.

The OBL has also been actively opposing the proposals in the media, telling Crain's Cleveland Business that the proposals "will raise privacy concerns, erode customer trust in the banking system and cause struggles for smaller institutions in particular." OBL President & CEO Mike Adelman and Senior Vice President Evan Kleymeyer also appeared on WLW radio shows to lambast the proposals.