A proposal from the Biden administration would require banks to report all financial transactions over $600 to the Internal Revenue Service.
Critics say the idea is a blatant example of government overreach, and an invasion of privacy.
On Tuesday, U.S. Treasury Secretary Janet Yellen told CNBC, "Right now, on every bank account that earns more than $10 a year in interest, the banks report the interest earned to the IRS. That's part of the information base that includes W2's and reports on dividends in other income that taxpayers earned. So collection of information is routine."
Yellen said officials are looking at tightening the rules to reduce what she called the nation's "enormous tax gap."
Texas Bankers Association President/CEO Chris Furlow told KRLD News the IRS has no probable cause to collect such a wide net of personal information. He said implementation of the new $600 rule would treat all Americans as "presumed tax cheats." Furlow spoke with KRLD's Chris Sommer.
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