Sen. Scott Introduces Bill to Block IRS Reporting Proposal

Sen. Tim Scott (R-S.C.) today introduced a bill that would block the Internal Revenue Service from creating new requirements for financial institutions to report gross inflows or outflows or any other transaction-level information on customer accounts.

The bill—a companion to the Prohibiting IRS Surveillance Act introduced by Rep. Drew Ferguson (R-Ga.) last week—is co-sponsored by Senate Finance and Banking Committee Ranking Members Mike Crapo (R-Idaho) and Pat Toomey (R-Pa.), along with 45 other GOP senators.

The American Bankers Association strongly supports both bills. “While we reiterate our support for closing the tax gap, we strongly support congressional efforts like yours that would prohibit IRS from implementing a costly reporting regime with far reaching unintended consequences on consumers and small businesses,” the association said yesterday in letters to Sen. Scott and Rep. Ferguson.