Political | Process

The measure is being considered by lawmakers as a source of revenue in the Biden administration’s proposed $3.5 trillion budget reconciliation plan. 

• The budget plan would enact a bevy of social policy objectives to accompany a separate looming infrastructure overhaul. In search of revenue, the Biden administration has argued that a more robust reporting regime would narrow the so-called tax gap and help the IRS identify billions owed to the government by wealthy taxpayers that go unpaid.

• The measure is being considered by lawmakers as a source of revenue in the Biden administration’s proposed $3.5 trillion budget reconciliation plan. It could result in banks having to report transaction data for any account with at least $600 of inflows or outflows annually.

• But the industry’s focus on the provision has intensified in recent days with Democratic lawmakers intent on passing one of President Biden’s key legislative priorities.

• “From a bank perspective, the administrative challenges and complexities of having a $600 annual threshold may not achieve the policy goals of reducing tax avoidance,” said Scott Talbott, senior vice president of government relations at the Electronic Transactions Association.

• The budget plan would enact a bevy of social policy objectives to accompany a separate looming infrastructure overhaul. In search of revenue, the Biden administration has argued that a more robust reporting regime would narrow the so-called tax gap and help the IRS identify billions owed to the government by wealthy taxpayers that go unpaid.

SOURCE: AMERICANBANKER