But this proposal doesn't suggest reporting any individual transactions that aren't already required to be reported.
"The IRS wouldn't receive details on individual transactions but, rather, gross yearly totals."
"Financial institutions would report the information on an expanded Form 1099-INT. Treasury Secretary Janet Yellen said the forms would include one box for total deposits or inflows and one box for total withdrawals or outflows."
Note that this gives no additional information on who money is sent to or received from, or the size of individual transactions, just the total amount of money flowing into and out of an account in the span of a year. This isn't quite the invasion of privacy you're making it out to be.