The PA Chamber recently joined several statewide banking and credit union associations in sending a coalition letter to Pennsylvania’s Congressional delegation opposing a proposed IRS reporting requirement included in the Biden administration’s $3.5 trillion budget reconciliation package.
The provision in question would require banks to report customers with account balances over $600, personal and business account ‘flow” information to the Internal Revenue Service– a move that would vastly expand the amount of customer information that is already reported to the IRS. While the administration has attempted to frame this move as “helping to close the tax gap,” the coalition letter stresses how the requirement would be without the customers’ consent, presenting significant customer privacy and data security concerns. “These concerns will certainly diminish efforts to move individuals and small businesses from the ranks of the unbanked to those who hold safe and sound banking relationships,” the signatories warned.
As the measure awaits consideration, the letter urged the PA delegation to convey the industry’s opposition to their colleagues on the committee.
PA Chamber President Gene Barr also sent a letter to Congresswoman Chrissy Houlahan, D-PA, on behalf of our organization and its members urging her to oppose the proposed expansion of personal banking information disclosure. “This is a sweeping overreach, that presents extreme privacy rights issues and data security concerns for millions of Pennsylvania citizens and businesses. Congress could vote on the inclusion of this proposal as part of the budget reconciliation package over the next few days. We urge you to reject this measure,” Barr wrote.
Negotiations on this measure are ongoing; the PA Chamber is encouraging our members who would be affected by this proposal to contact their member of Congress and express their opposition.