Request to Oppose Proposal

I hope this message finds you doing well and enjoying our gorgeous fall weather. While the days have been very pleasant, I don’t think any of us would mind some “rain” days. Drought has taken a heavy toll on our ag producers this year, especially our livestock producers who are scrounging hay and feed to get through the winter. I feel for them during this challenging time.

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We also have a bevy of headwinds related to the Biden administration’s fiscal 2022 budget proposal. One of the most concerning aspects of the budget package is the administration’s proposal that would require banks and other financial institutions to report to the Internal Revenue Service (IRS) on the deposits and withdrawals of business and personal accounts. Congress is now quickly advancing this proposal in its budget reconciliation package which needs only a simple majority to pass. I am pleased to report that North Dakota’s Congressional Delegation opposes the budget proposal and especially this invasive aspect and ICBND and ICBA are aggressively opposing it. Nonetheless, I ask that you communicate the problems with this proposal to your customers. Their voices are the most powerful.

Remind customers that this proposal constitutes a broad, unwarranted infringement on the privacy of all bank customers without grounds to suspect tax evasion. Why should community banks once again be the policing power for federal government agencies? The proposal is intrusive and indiscriminate and undermines the goal of reducing the unbanked. Can you imagine what will happen with those folks who are already skeptical of the government and/or the financial system? I have first-hand knowledge from one of our member banks that at least a few customers have already withdrawn their deposits and taken them home. That’s not even safe, but I can’t really blame those customers.

The proposal would also increase taxpayer complexity and confusion and how could it not overwhelm the IRS with personal financial data and increase the risk of data breaches. It’s already a mystery what the government does with all those SAR’s and CTR’s that you have to report into what seems like a black hole.

The good news is that the community banking industry’s efforts to engage its customers is bearing fruit with nearly 500,000 consumer messages to lawmakers. But more is better!

Until next time,

Barry