ABA welcomes bill to prevent transaction reporting to IRS

The American Bankers Association this week praised the reintroduction of a Senate bill to prevent the IRS from requiring financial institutions to turn over transaction information for millions of law-abiding bank customers. The Prohibiting IRS Financial Surveillance Act is sponsored by Senate Banking Committee Ranking Member Tim Scott (R-S.C.), Senate Finance Committee Ranking Member Mike Crapo (R-Idaho) and other Senate Republicans.

“While we firmly believe that everyone should honor their tax obligations, the American people have a reasonable right to privacy and Congress should consider how the IRS can use its existing authorities to focus on those suspected of evading their taxes, rather than casting such a wide and unnecessary net,” ABA President and CEO Rob Nichols said. “We urge lawmakers to listen to the concerns of their constituents and advance this commonsense proposal.”