Congressman Michael Guest (MS-03) recently joined Rep. Tom Emmer (MN-06) and other Republican members of Congress expressing concern about a recent IRS data collection proposal.

In a letter sent to Speaker Nancy Pelosi, Ways and Means Chair Richard Neal, Department of Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig, the members of Congress expressed concern that the IRS proposal would require financial institutions and other financial services providers to report certain transaction level data, as well as information about the outflows and inflows on accounts of more than $600 to the IRS annually.

This proposal would impose significant compliance costs on banks, credit unions and related financial institutions, and also infringe on the privacy of millions of Americans.

“This proposal is simply grasping at straws in an attempt to provide cover for the huge spending proposals Congressional Democrats are pursuing,” Guest said. “There is no evidence that the IRS data collection proposal is effective at closing the ‘tax gap’ — the difference between taxes paid and taxes owed by law.”

Guest said the proposal would sacrifice individual privacy for the sake of government revenue, which he called “an ineffective and Orwellian strategy of offsetting government spending, especially when other methods remain available.”

“Following the invaluable service our financial institutions provided to keep our nation afloat during the pandemic, this proposal to help fund a multi-trillion-dollar spending proposal at the cost of Americans’ privacy is a downright betrayal of our financial institutions and the American people and should not be implemented.”