PREFILED    NOV 15 2021

REFERENCE TITLE: financial institutions; burdensome reporting requirements

State of Arizona

Senate

Fifty-fifth Legislature

Second Regular Session

2022

SM 1001

Introduced by

Senator Leach

A MEMORIAL

urging the united states congress to protect consumers and financial INSTITUTIONS from burdensome Internal Revenue Service rules.

(TEXT OF BILL BEGINS ON NEXT PAGE)

To the Congress of the United States of America:

      Your memorialist respectfully represents:

      Whereas, the Biden administration and certain members of Congress have proposed changes to tax information reporting that would require banking and financial institutions to report to the Internal Revenue Service on the incoming and outgoing transactions from every customer's financial account with gross inflows and outflows that range from $600 to $10,000 during the taxable year; and

      Whereas, these proposals would require financial institutions to report, for both personal and business accounts, the account's physical cash amount, transactions with foreign accounts and transfers to and from the owner and the owner's other accounts; and

      Whereas, savings, transactional, loan and investment accounts in these financial institutions would be subject to these proposed requirements; and

      Whereas, there are serious concerns over data privacy and security if these new requirements are put in place. Keeping member and customer account information private and secure is among the primary goals of all financial institutions in this state, and these new requirements, at any threshold dollar amount, could jeopardize the security of accounts and personal information; and

      Whereas, privacy is cited as one of the primary reasons individuals choose not to open bank accounts, and this proposal lays a foundation for new and future barriers for the unbanked and underbanked; and

      Whereas, financial institutions in this state and nation are already subject to many burdensome regulations. Including these new and extensive reporting requirements would deepen that burden in an untenable and destructive fashion for many community-based financial institutions.

Wherefore your memorialist, the Senate of the State of Arizona, prays:

      1. That the United States Congress act to protect consumers from harmful and intrusive Internal Revenue Service rules and financial institutions from burdensome reporting requirements.

      2. That the Secretary of State of the State of Arizona transmit copies of this Memorial to the President of the United States Senate, the Speaker of the United States House of Representatives and each Member of Congress from the State of Arizona.