Missouri State Treasurer Scott Fitzpatrick today joined Missouri bankers across the state to voice concerns about an Internal Revenue Service (IRS) proposal requiring financial institutions to turn over financial account information for accounts with inflows or outflows totaling more than $10,000.
At stops in St. Charles, Jefferson City, and Springfield, the Treasurer and Missouri financial institution leaders reiterated that the proposed reporting mandate the IRS is forcing on financial institutions threatens customers and will lead to increased costs for individuals and small businesses. The Biden Administration claims the proposal is a way to crack down on high-income earners who fail to accurately report their income for tax purposes, but this proposal will actually apply to millions of Americans with bank accounts, including many living below the poverty line.
“This proposal is the Biden Administration’s latest attempt at blatant government overreach and, like so many other things coming out of Washington, D.C., will impact lower and middle-class Americans far more than the wealthy,” Treasurer Fitzpatrick said. “Granting the IRS access to this information will increase the risk of personal information being compromised, increase costs for consumers and small businesses, and make it less likely that unbanked Missourians will seek a path to financial independence—all of which are valid reasons to reject this proposal. As Treasurer, I stand with Missouri’s financial industry leaders in calling on Congress to say ‘No’ to giving the IRS unfettered access to Missouri financial accounts.”
“Almost every account at every financial institution in the country would be submitted to the IRS if Congress passes this proposal,” Max Cook, President and CEO of the Missouri Bankers Association, said. “This shotgun approach from the IRS will not catch tax evaders. What it will do, without question, is add confusion and anxiety to the lives of everyday Americans who suddenly worry about who’s looking at their bank accounts. This is a fundamental violation of an individual’s right to privacy. This intrusive, dangerous initiative is simply unacceptable.”
“MIBA believes this proposal is misguided and is not targeting those cheating the system but instead grabs information on nearly every Missouri taxpaying citizen, individuals, and businesses,” Jack Hopkins, President, Missouri Independent Bankers Association and Community Bank of Raymore. “MIBA applauds the Treasurer for joining us in this fight.”
“The IRS proposal puts consumers’ financial well-being at risk. This is a fundamentally flawed plan that expands the type of information that credit unions, along with other financial institutions, would be required to report to the IRS – violating consumers’ privacy, creating personal data security concerns, and adding a compliance burden that will pull funds away from the consumers who need it most,” Brad Douglas, President and CEO, Heartland Credit Union Association, said. “It’s a proposal that would hurt consumers, including the 1.7 million served by credit unions in our state.”
Earlier this month, Treasurer Fitzpatrick announced that if passed, he will not comply with this reporting requirement. He joined 23 other state financial officers in calling on Congress not to pass this proposal.
Treasurer Fitzpatrick administers MOST, Missouri’s 529 Education Plan and MO ABLE, Missouri’s savings and investment program for individuals with disabilities. These programs represent nearly 200,000 savings and investment accounts with more than $4 billion in assets.
Treasurer Fitzpatrick is the National Vice-Chair of the State Financial Officers Foundation. The Missouri Bankers Association is a statewide trade and professional organization that represents the interests of more than 245 banks and savings and loan financial institutions in Missouri. The Heartland Credit Union Association represents not-for-profit financial cooperatives.
