Banks Oppose Biden’s New Proposal on IRS Reporting

A trade group calls the attempt an ‘overreach,’ saying it would make U.S. banks ‘police force for the IRS’

President Joe Biden speaks during an event in the East Room of the White House in Washington, D.C., on Sept. 16, 2021. Win McNamee/Getty Images

WASHINGTON—Opposition is growing to a new proposal aimed at curbing tax evasion that would be part of the $3.5 trillion reconciliation package under consideration by Congress.

The proposal, which is being pushed by the Biden administration, would require banks and other financial institutions to report to the Internal Revenue Service (IRS) any deposits or withdrawals totaling more than $600 to or from all business and personal accounts.