Should this provision be enacted, taxpayers will be awash in new 1099s reporting de minimis amounts of interest. Additionally, this new reporting requirement will impose substantial costs on the financial services industry that far exceed the revenue that will be gained by the proposal.
Thursday, June 11, 2015
Onerous Tax Reporting Provision Removed from Trade Bill
Following advocacy by ABA, state associations, bankers and other financial trade groups, a controversial revenue-raising provision in trade preferences bill H.R. 1295 was removed. The removed provision would have required depository institutions to file reports with the IRS on all interest-bearing and non-interest-bearing deposit accounts. Reports are currently required only for interest-bearing accounts starting at $10 in interest. Last week ABA and several trade groups said in a letter: