Consumer Alert - Pending Legislation
October 14, 2021
To Our Customers,
We are writing to you again regarding legislation that is taking shape in Washington. As said before, we care about you and your relationship with Middletown Valley Bank, which is why we are committed to providing you pertinent information to help you advocate for your financial privacy.
Previously, we shared that if a proposed provision in a recent government funding bill were passed, financial institutions would have been required to report transaction activity on all personal and business accounts with a balance greater than $600 to the Internal Revenue Service (IRS). Yesterday, House Speaker Nancy Pelosi announced that some lawmakers are looking to include a similar tax reporting provision in their current budget reconciliation package. This controversial proposal would require financial institutions to track inflows and outflows on customer accounts above a certain de minimis threshold and report them to the IRS. Although the threshold for reporting has not yet been decided, many lawmakers in favor of this kind of legislation are setting it at $10,000.
In a recent letter to lawmakers, the American Bankers Association (ABA), Maryland Bankers Association (MBA), and many 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”.
We value your business and privacy and want to make sure you have all the information needed to advocate for your best interest. If you haven’t already done so, and wish to voice your opinion to policymakers or learn more about this proposal, visit the grassroots site Secure American Opportunity, brought to you by the ABA. By visiting the Secure American Opportunity site, you can connect directly with elected representatives in your district.
Please let us know if you have any questions. We look forward to continuing to serve you and our communities.
Sincerely,
Robert E. “BJ” Goetz, Jr.
President & CEO