Senate blocks amendment to stop IRS monitoring on party-line vote

The Senate voted down an ICBA-advocated amendment that would have barred the IRS from using funds in a pending spending bill to monitor bank customers’ financial transactions.

Amendment: The amendment from Sen. Mike Crapo (R-Idaho) would have effectively blocked an ICBA-opposed proposal that would require financial institutions to report to the IRS on the deposits and withdrawals of all business and personal accounts with more than $600.

Vote: In a letter and national news release, ICBA urged senators to support the amendment, though it failed to advance on a 49-50 party-line vote.

Crapo: Speaking on the Senate floor, Crapo said he opposes the indiscriminate monitoring of law-abiding Americans’ sensitive financial information and thanked ICBA for its efforts to advance the amendment.

Budget Resolution: The Senate began taking up amendments to the $3.5 trillion budget bill after voting to send a $1 trillion bipartisan infrastructure bill to the House.

Reconciliation: Democrats are working to pass the budget bill with “reconciliation” instructions that would allow a broader legislative package—which could include the IRS reporting plan and other ICBA-opposed provisions—to pass without Republican support.

Grassroots: The Senate actions are the beginning of battle on the proposed spending plan provisions. ICBA continues encouraging community bankers to use its Be Heard grassroots action center to urge opposition to the IRS reporting proposal and to express opposition in district meetings during the August recess.