House Speaker Nancy Pelosi (D-Calif.) told reporters on Tuesday that Democrats plan to include a controversial tax reporting provision in their budget reconciliation package that would require banks to report information to the Internal Revenue Service on gross inflows and outflows on customer accounts above a certain de minimis threshold.

Pelosi did not specify what the threshold would be, though Democrats have eyed a $10,000 threshold in recent days, up from the $600 threshold originally proposed by the Biden administration. Despite Pelosi’s remarks, House Democrats have not yet agreed on the details of a final reconciliation package, and no vote has been scheduled at this time. Any final version will have to also clear the U.S. Senate, where some Democrats are pushing for a smaller package.

ABA has aggressively opposed the tax reporting proposal at any dollar threshold, calling it “bad tax policy” and urging lawmakers to reject it from any future legislation. In a recent letter to lawmakers, ABA and other banking trade groups noted that “the impact on average Americans and the safety and privacy of their financial information would not be mitigated by raising the reporting threshold to $10,000 or even $100,000. . . . In the end, whether it is average workers or self-employed citizens virtually all Americans will be subject to this new reporting.”

The Association is continuing to urge banks and their customers to contact their representatives to let them know they firmly oppose this proposal. Bankers can find communications tools to help engage bank customers at SecureAmericanOpportunity.com.

• Take action now.

• Read ABA’s letter.

• Access ABA’s grassroots tools for customers.