Letter to Hon. Nancy Pelosi, Speaker of the House, Hon. Janet Yellen, Secretary of Treasury, Hon. Richard Neal, Chairman of the House Ways and Means Committee, and Hon. Charles Rettig, and Commissioner of the Internal Revenue Service - Womack, Lawmakers Express Concerns with Biden Administration's IRS Proposal


By: Mark Kelly, Liz Cheney, Carol Miller, Alex Mooney, Mike Gallagher, Glenn Grothman, Scott Fitzgerald, Cathy McMorris Rodgers, Ben Cline, Rob Wittman, Burgess Owens, Blake Moore, John Carter, Michael Cloud, Michael Burgess, Roger Williams, Beth Van Duyne, Chip Roy, Jodey Arrington, Pete Sessions, Randy Weber, Sr., August Pfluger, Lance Gooden, Van Taylor, Louie Gohmert, David Kustoff, Mark Green, John Rose, Scott DesJarlais, Chuck Fleischmann, Tim Burchett, Diana Harshbarger, Dusty Johnson, Tom Rice, Ralph Norman, Jr., William Timmons, Jeff Duncan, GT Thompson, Jr., Guy Reschenthaler, Fred Keller, Lloyd Smucker, Scott Perry, Dan Meuser, Brian Fitzpatrick, Tom Cole, Frank Lucas, Markwayne Mullin, Kevin Hern, Troy Balderson, Warren Davidson, Bob Gibbs, Bob Latta, Brad Wenstrup, John Katko, Tom Reed II, Claudia Tenney, Elise Stefanik, Nicole Malliotakis, Andrew Garbarino, Lee Zeldin, Yvette Herrell, Adrian Smith, Donald Bacon, Jeff Fortenberry, Kelly Armstrong, Ted Budd, Dan Bishop, Richard Hudson, Jr., Greg Murphy, Matt Rosendale, Michael Guest, Jason Smith, Vicky Hartzler, Blaine Luetkemeyer, Ann Wagner, Peter Stauber, Tom Emmer, Lisa McClain, Tim Walberg, Fred Upton, John Moolenaar, Peter Meijer, Bill Huizenga, Jack Bergman, Andy Harris, Julia Letlow, Andy Barr, Brett Guthrie, James Comer, Jr., Ron Estes, Tracey Mann, Trey Hollingsworth III, Larry Bucshon, Jim Banks, Jackie Walorski, Darin LaHood, Adam Kinzinger, Mary Miller, Rodney Davis, Mike Bost, Randy Feenstra, Mariannette Miller-Meeks, Ashley Hinson, Rick Allen, Barry Loudermilk, Jody Hice, Andrew Clyde, Austin Scott, Drew Ferguson, Buddy Carter, Mario Diaz-Balart, Byron Donalds, Vern Buchanan, Scott Franklin, Gus Bilirakis, Bill Posey, Kat Cammack, Doug Lamborn, Ken Buck, Ken Calvert, Young Kim, Devin Nunes, David Valadao, Doug LaMalfa, Debbie Lesko, David Schweikert, Andy Biggs, Bruce Westerman, French Hill, Mo Brooks, Mike Rogers, Barry Moore, Jerry Carl, Steve Womack
Date: Sept. 13, 2021
Location: Washington, DC

Dear Speaker Pelosi, Chairman Neal, Secretary Yellen, and Commissioner Rettig:

We are concerned about a recent IRS data collection proposal to increase tax information reporting requirements on financial institutions, which we do not believe are necessary or helpful toward closing the "tax gap."

The recent spending proposal to include new tax information reporting requirements for financial institutions would not only impose significant compliance costs on our banks, credit unions, and related financial institutions that have served as the backbone of this economy these past 18 months, but also infringe on the privacy of millions of Americans.

Specifically, such a proposal would require financial institutions and other financial services providers report information about the outflows and inflows on accounts over $600 to the IRS every year. However, financial institutions currently report a tremendous amount of data to the IRS, and no evidence has shown that the proposed requirements would substantially aid the IRS's efforts to close the tax gap beyond the information already at the IRS's disposal.

Not only would such an overly comprehensive IRS database require significant resources to build, maintain, and protect, but it would make the personal, financial data of millions of Americans vulnerable to attack. Considering the IRS experiences 1.4 billion cyberattacks annually and has experienced multiple data breaches, we should not give this agency additional sensitive data to manage.

Additionally, privacy is one of the primary reasons individuals choose not to open bank accounts. This overreaching proposal, if adopted, would further exacerbate banked/unbanked/underbanked divides.

We ask you to address our concerns as we work to craft a regulatory environment focused on protecting Americans and our financial system, not one focused on raising revenue at the expense of our taxpayers and financial institutions.