In a letter to Treasury Secretary Janet Yellen today, Senate Finance Committee Ranking Member Mike Crapo (R-Idaho) called for more details on the updated information reporting proposal that was announced yesterday. The controversial proposal—which ABA has aggressively opposed—would require financial institutions to report information on gross inflows and outflows for all accounts above a revised $10,000 de minimis threshold, with certain carve-outs—though no details were provided on how flow calculations would work.
Crapo emphasized that “Republicans have not seen legislative text or even so much as an outline” on the revised proposal and requested that Treasury confirm the reporting threshold and articulate which inflows and outflows will be carved in or carved out, among other things.
“Closing the tax gap is a worthwhile endeavor, but not at the cost of invading Americans’ privacy using a scheme that only one political party has seen,” Crapo said. “Rather than sweeping all American taxpayers into an all-encompassing financial-activity reporting dragnet, efforts to close the tax gap focused on taxpayer service would be a better approach.”