RALEIGH – State Treasurer Dale Folwell has announced that he is joining 23 other state treasurers, auditors and financial officers in signing a letter opposing the legislation giving the Internal Revenue Service (IRS ) new powers to monitor US bank accounts with more than $ 600 in deposited funds. The IRS’s additional oversight authority was first made public in May 2021 and is included in the proposed $ 3.5 trillion federal budget plan.
“I believe everyone should pay their fair share of taxes,” said Treasurer Folwell. “However, this proposal is an unprecedented invasion of privacy that could actually increase the problem of the ‘unbanked’ and ‘underbanked’ in America.”
The treasurer’s office says reports show that 25% of all U.S. households are either unbanked or underbanked.
Folwell also expressed concern that the new regulations might be too burdensome and costly for many small community banks that serve rural North Carolina.
âThese new IRS powers will have a chilling effect on those who already operate outside of the current banking system,â Treasurer Folwell said. âThey are already frequently victims of predatory lenders and others who seek to profit from them because they do not have access to traditional financial services.
Treasurer Folwell joins more than 40 national trade associations, including the American Bankers Association, the United States Chamber of Commerce and the North Carolina Bankers Association in opposing the proposed new powers.