Washington, D.C. (Oct. 1, 2021) — The Independent Community Bankers of America’s (ICBA) Minority Bank Advisory Council today expressed strong opposition to the Biden administration’s proposal that would require banks to report customer account information to the IRS.
In a letter to the congressional Black, Asian Pacific American, and Hispanic caucuses, the coalition of minority depository institutions warned that the proposal would harm efforts to bank the unbanked while diverting resources from minority communities.
“This proposal should not be included in the Build Back Better Act or any other legislation,” the council wrote. “Our primary concern is that it would undermine the critical relationship of trust we foster within the communities we serve—communities prone to distrust of institutions and government agencies. We fear that the proposed invasive and indiscriminate account reporting to the IRS would undermine the goal of bringing more people into the banking system and may drive many of those in the system to leave.”
In the letter, the group said:
- ICBA polling conducted by Morning Consult found 61% of voters in urban areas would change their banking habits if their transactions were being reported to the IRS—with many likely opting out of the banking system.
- The costs associated with implementing the new reporting regime would be better allocated deploying resources to local communities.
- Improved tax compliance should be achieved through balanced, unintrusive measures.
For more information, visit icba.org.
About ICBA
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.
With nearly 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ more than 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5.8 trillion in assets, over $4.8 trillion in deposits, and more than $3.5 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org
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