Prohibiting IRS Financial Surveillance Act introduced by Republican Senators

U.S. Senate Republicans on Oct. 21 introduced legislation that would prohibit the implementation of new requirements for reporting bank account deposits and withdrawals.

The Prohibiting IRS Financial Surveillance Act, S. 3056, which is sponsored by U.S. Sen. Tim Scott (R-SC) and 47 original cosponsors, would prevent the Internal Revenue Service (IRS) from implementing the Democrats’ plan to give the agency access to Americans’ transaction information.

“Whether it’s $600 or $10,000, the IRS should not be spying on the bank accounts of millions of everyday Americans,” said bill cosponsor U.S. Sen. Shelley Moore Capito (R-WV). “Instead of tackling the dozens of issues facing everyday Americans, Democrats are focused on growing the size of the federal government and intruding in our lives.”

U.S. Sen. John Hoeven (R-ND), another cosponsor of S. 3056, agreed, calling the Democrats’ proposal “a serious overreach and invasion of privacy.” 

“We continue pressing the administration and Senate Democrats to abandon this troubling proposal and are advancing this legislation to prevent it from moving forward,” said Sen. Hoeven.

In addition to Sens. Capito, Scott, and Hoeven, the bill is also cosponsored by GOP lawmakers including U.S. Sens. John Thune (R-SD), Joni Ernst (R-IA), Roy Blunt (R-MO), Thom Tillis (R-NC), Steve Daines (R-MT), Jerry Moran (R-KS), Mike Rounds (R-SD), Richard Burr (R-NC), Todd Young (R-IN), Roger Wicker (R-MS), Marsha Blackburn (R-TN), Dan Sullivan (R-AK), Susan Collins (R-ME), Deb Fischer (R-NE), and Rob Portman (R-OH).

“President Biden and the Democrats’ invasive IRS proposal is a serious threat to the privacy and financial data of Kansans,” said Sen. Moran. “This proposal will give the IRS unprecedented access to the bank accounts of nearly every American in every tax bracket, and Kansans are right to be outraged.”

Sen. Moran added that he and his colleagues “will continue pushing back on this terribly intrusive plan and will work to implement legislative safeguards to protect the privacy of taxpayers.”

If enacted, S. 3056 would state that the U.S. Treasury Secretary may not require any financial institution to report on the inflows or outflows of any account maintained by such institution, or any balances, transactions, transfers, or similar information with respect to any such account, according to the text of the bill, which has been referred to the U.S. Senate Banking, Housing, and Urban Affairs Committee for consideration. 

The same-named U.S. House of Representatives’ version of the measure, H.R. 5586, was introduced on Oct. 15 by Republicans and currently has 171 GOP cosponsors.