FlowTracker Analytics shows support of ICBA, ABA, CUNA, and NAFCU initiatives to avoid proposed IRS banking transaction reporting risks and explain how money flow analytics can provide more useful information in letter to relevant Members of Congress, Treasury and the IRS.

Full text of our letter to leaders of the House Finance Committee, Senate Ways and Means Committee, Department of Treasury and Internal Revenue Service is reproduced below. In the letter we describe the IRS banking transaction reporting risks and propose a solution using FlowTracker’s commercially available software to provide more relevant information with greatly reduced risks of data misuse or loss to hackers, leakers and others.

Money flow analytics overcome IRS banking transaction reporting risks and provide superior insights

Money Flow analytics as proposed creates and classifies customer and account level money flow events similar to a Corporation’s Statement of Cash Flow. It is a superior source of information for tax compliance surveillance, avoids privacy and data loss risks inherent in the IRS proposal and provides useful information to management. The advantages of this approach are several:

• No transaction data is required, reducing privacy and data loss risks
• Internal money flows between accounts, branches and products held by the same customer are classified separately, eliminating false signals that are of no interest for tax purposes
• Money flows external to the customer / institution relationship are captured, enabling rich management reporting insights into customer behaviors as they make financial decisons to meet their changing needs.