Lubbock banker thinks proposed IRS rules could be ‘invasion of privacy’
LUBBOCK, Texas (KCBD) - Congress is negotiating next year’s budget bill and a Lubbock banker is concerned that one proposed requirement could be an invasion of privacy.
If your account has more than $600 coming in or going out in a year, your bank would be required to report the inflow and outflow amounts to the IRS.
President of American Bank of Commerce James Arnold says the bill currently requires them to report the total amount of inflow and outflow cash for most Americans, but he worries that this new proposal would require transactional data.
“The deposits going into the bank and the money leaving the bank in terms of checks, wires, etc. So inflows and outflows. One thing people might mistake is that the bill would require people to report transactional data. Currently, the bill says we have to report inflows and outflows,” Arnold said.
Currently, banks would not be required to share the details of individual transactions, but the amount you receive and spend would be available to the IRS. Arnold believes that would be more than the IRS could handle.
“If banks are required to report transactions of bank accounts, more than $600, that’s millions and millions of US citizens being reported to the government on their bank account information. I think there’s a high risk of someone getting their data compromised, and their data stolen, etc,” Arnold said.
This is only a proposal, and Arnold encourages viewers to reach out to their congressman if they’re concerned.
If congress approves it, the rule would go into effect December of next year.
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