Democrats Trying to Retool IRS Financial Data Plan

Congressional Democrats and the Biden administration are discussing a more narrowly targeted plan for financial institutions to provide more customer account data to the IRS, hoping that a tighter focus will assuage privacy concerns while still helping Democrats pay for their significant social spending plans.

An administration official said in a Thursday interview that while negotiations are fluid, the focus is on harder-to-track transactions related to business partnerships, rental income, proprietorships, and royalties. The additional data collection would be paired with increased penalties for unauthorized access to or leaks of taxpayer information, a felony already punishable by up to five ...