We are writing to express our deep concern with an onerous regulation (REG-146097-09), proposed by the Internal Revenue Service, that would undermine American banks and the U.S. financial system by requiring the reporting of deposit interest paid to nonresident aliens.

The Center for Freedom and Prosperity Foundation, joined by 21 of the country’s most influential free-market and taxpayer groups, has sent a letter warning President Obama, Treasury Secretary Timothy Geithner and top Congressional leaders “about the fiscal and economic risks of a value-added tax (VAT).”