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
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.
Bill Allen, CEO
Bank of the Bluegrass