Odd Ball HCM2004 - 552R - H Ver of HCM2004

House Engrossed

urging Congress; reporting requirements; taxes

State of Arizona

House of Representatives

Fifty-fifth Legislature

Second Regular Session

2022

HOUSE CONCURRENT MEMORIAL 2004

A Concurrent Memorial

urging the United States Congress to oppose the reporting requirements in the biden administration's tax increase proposal for fiscal year 2022.

(TEXT OF BILL BEGINS ON NEXT PAGE)

To the Congress of the United States of America:

Your memorialist respectfully represents:

Whereas, the Biden administration's tax increase proposal for fiscal year 2022 includes a number of provisions that would place undue burdens on banks, small businesses and law-abiding American citizens; and

Whereas, the proposal seeks to increase tax enforcement measures by requiring peer-to-peer payment transaction apps as well as banks and other financial institutions to annually report aggregated data on all account inflows and outflows of $600 or more to the Internal Revenue Service (IRS), and the reports would also disclose whether transactions involved physical cash, foreign accounts or transfers between accounts with the same owner. These requirements would result in serious issues regarding privacy, compliance costs and negative impacts on low-income communities; and

Whereas, the proposal's low $600 threshold for reporting would ensnare most active bank accounts, including those owned by individuals and small businesses. As a result, the financial data of the majority of bank accounts would be sent to the IRS, which experiences more than one billion cyberattacks each year. In addition, a June 2021 ProPublica article revealed a massive leak of tax return data from the IRS, demonstrating that the agency is unable or unwilling to protect taxpayer information. Considering its many vulnerabilities in cybersecurity, the IRS should not be trusted with more private information; and

Whereas, by holding financial institutions responsible for data collection and reporting, the proposal would force banks to increase spending on additional staffing, technology and other resources. These costs could then be passed on to the depositors, thereby burdening tax-compliant citizens and businesses; and

Whereas, people from both political parties have expressed concern about the Biden administration's tax increase proposal. A group of 141 House Republicans explained their position in a letter to their Democratic colleagues, and House Democrats omitted the bank reporting requirements in their September 2021 list of tax policy changes due to the potential harm it may cause to low-income communities; and

Whereas, the Biden administration's tax increase proposal fails to consider cybersecurity risks and unjust burdens on lawful individuals, and the United States Congress should oppose this unprecedented intrusion into the privacy of Americans.

Wherefore your memorialist, the House of Representatives of the State of Arizona, the Senate concurring, prays:

1. That the United States Congress oppose the burdensome reporting requirements included in the Biden administration's tax increase proposal for fiscal year 2022.

2. That the Secretary of State of the State of Arizona transmit copies of this Memorial to the President of the United States, 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.