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What You Need to Know About the Proposed IRS Reporting Requirements

 

Dear Bank of the Bluegrass Family,

The United States Treasury has presented a proposal to Congress that would require banks to report any deposit or withdrawal over $600 to the IRS.

What the proposal means for our customers

If congress adopts the measure, any personal or business account will be subject to monitoring by the IRS if the value of any of its transactions meets or exceeds $600. Any account receiving paychecks, purchasing furniture or equipment, or even used for daily expenses with transactions meeting the threshold will be reported. This includes transfers between accounts.

What the proposal means for us

Annually, banks and credit unions will be required to report the aggregate inflow and aggregate outflow from each of these accounts.

This requirement would impose a heavy burden on banks and other financial institutions to ensure adequate staffing to comply with the new regulations. What’s more, the requirement provides personal details to the IRS about our clients—information we do our very best to protect.

What you can do about it

Congress has yet to act on this proposal. Before they do, you can share your thoughts on the proposal by contacting your Representative and our Senators.

I believe in the strength of our voices and encourage you to reach out.

We will continue to monitor this and any other legislation and will keep you updated on any changes that could affect you. Thank you for trusting Bank of the Bluegrass, and for being part of our banking family.

Sincerely,

Image of CEO Bill Allen

Bill Allen, CEO

Bank of the Bluegrass