NEW YORK (CBSNew York) – The Biden administration is trying to stop tax evasion and is offering to do so by forcing banks to report your account information to the IRS, but many financial institutions balk at the idea.
From Vermont to Mississippi, banks across the country are issuing calls to action imploring their customers to stop a proposal that would give the IRS more control over bank accounts.
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âI think it’s a private matter what your bank account is, what you have in your bank account or what you hold,â one person said.
“Don’t you have enough?” Leave us alone, âsaid Lissette Melendez, a resident of Hoboken.
As CBS2’s Christina Fan reports, the Biden administration is pushing the bill as a way to prosecute the wealthy and crack down on tax evasion.
Financial institutions should provide the IRS with data on personal and business accounts with total annual deposits or withdrawals exceeding $ 600.
Critics like Jack Hanney, along with Patriot Gold Group, call it a huge invasion of privacy.
âThey are trying to pass themselves off as the richest American, but the reality is it would affect over 100 million American homes,â he said.
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Treasury Secretary Janet Yellen has repeatedly defended the policy, saying it would help the IRS recover around $ 460 billion in revenue over the next decade.
House Speaker Nancy Pelosi also echoed her support on Tuesday.
âIf people break the law and don’t pay their taxes, one way to track them is through banking action,â she said.
But opponents wonder if the government can safely protect the information they collect.
Hanney says he has received numerous calls from clients anxious to “keep their money in financial institutions, keep their money in the bank, and have an interest in putting it in physical gold and silver.” .
The pullback appears to be putting some pressure on Democrats to scale back the proposal.
Pelosi noted in his comments Tuesday that the $ 600 threshold is not set in stone.
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The Biden administration hopes to use the recovered tax revenue to help fund its $ 3.5 trillion budget reconciliation plan.