- A group of 20 Republican AGs, led by Georgia AG Chris Carr, Idaho AG Lawrence Wasden, and Utah AG Sean Reyes, sent a letter to President Joe Biden and Treasury Secretary Janet Yellen in opposition to the administration’s proposed new Internal Revenue Service (“IRS”) reporting requirements for financial institutions.
- The letter argues that the administration’s proposed policy, under which all financial institutions will be required to report information to the IRS on every bank account that has a balance of at least $600 and exceeds $600 per year in transactions, is unconstitutional because it disregards protections against illegal searches.
- The letter also argues that financial institutions will have to transform their business practices to comply with the proposed reporting requirements and will likely pass the costs of this transformation onto consumers. In addition, the letter warns that the implementation of the proposal will lead to the centralized storage of sensitive financial information, which would create a new target for cyber criminals with the possibility of accessing the data of nearly every American.