“There's a long way to go in this process.” 'We certainly don't consider anything a done deal in reconciliation,” said James Ballentine, executive vice president of congressional relations and political affairs at the American Bankers Association. Yet the document also suggested that lawmakers could be flexible about adjusting the $600 threshold for reporting.Īlthough budget reconciliation is one of the few legislative vehicles that can pass the Congress by a simple majority without the prospect of a Senate filibuster, industry representatives say they still have a chance to stop the IRS reporting measure. The House Ways and Means Committee could consider the tax reporting proposal shortly, according to some sources.

The proposed IRS reporting regime, which would expand the income tax data banks already report on their customers, was included among a list of potential revenue sources in a draft document circulating on Capitol Hill that was obtained by American Banker. In search of revenue, the Biden administration has argued that a more robust reporting regime would narrow the so-called tax gap and help the IRS identify billions owed to the government by wealthy taxpayers that go unpaid. The budget plan would enact a bevy of social policy objectives to accompany a separate looming infrastructure overhaul.

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