Scott, Crapo introduce bill to prevent IRS financial surveillance

U.S. Sen. Tim Scott (R-SC), ranking member of the U.S. Senate Banking, Housing, and Urban Affairs Committee, join ranking member of the U.S. Senate Finance Committee U.S. Sen. Mike Crapo (R-ID) to unveil legislation this week that would prevent the Internal Revenue Service (IRS) from surveilling the private financial information of American taxpayers.

“Under the Biden administration and progressive leadership, the IRS has proposed outrageous actions that threaten the privacy of American taxpayers,” said Sen. Scott. “In light of this pattern, this legislation will prevent the IRS from taking future steps to encroach on the lives and finances of everyday Americans.”

Sen. Scott on Feb. 15 sponsored the Prohibiting IRS Financial Surveillance Act, S. 453, with 30 Republican original cosponsors, including Sen. Crapo. 

The Biden administration proposed new requirements in 2021 that would have directed the IRS to collect the private transaction information of nearly all Americans. S. 453, if enacted, would prohibit the implementation of those requirements to report bank account deposits and withdrawals, according to the text of the bill. 

“Americans are justifiably concerned about providing sensitive customer data to the IRS, an agency with an extensive history of leaks, hacks and other violations of taxpayer confidentiality,” Sen. Crapo said. “They loudly rejected the IRS bank reporting dragnet when it was originally proposed, and this legislation will prevent the IRS from turning banks and credit unions into private investigators for law-abiding Americans.”

The bill is supported by the Consumer Bankers Association, Credit Union National Association, American Bankers Association, Independent Community Bankers of America, U.S. Chamber of Commerce, National Association of Federally-Insured Credit Unions, Americans for Tax Reform, and the National Taxpayers Union.