Biden proposing requiring banks report to the IRS all transactions of all accounts worth $600 or more

[hog88]

A couple of points of clarification might be helpful here (not that you want to hear them since it undermines the shrill soapboxing itt):

1) The proposal is not reporting of every transaction of $600 or more. Rather, it is that if a given account has at least $600 in transactions in a given year, then the bank reports on the inflow and outflow.

2) The proposal has been touted by IRS chief Charles Rettig, who came form the Trump administration. The theory is that people are hiding income in accounts so as to avoid tax consequences.








If you want to avoid this i think you need to come to grips with two things. First, there are a lot of people out there intentionally underreporting income to avoid paying taxes they owe. Second, the IRS has had its legs taken out from underneath it, I think we all know by whom, and so the alternative is to increase the budget for enforcing, and to then actually do it.

I wondered how long it would take you to come to the defense. You know this isn't about making sure the "rich" avoid taxes this will only hurt the small time guys, you know the people the Dems claim to be for.

 

[85SugarVol]

This is troubling, to say the least.

Just leave us alone. Geez. Is there not a 4th amendment concern here?

Two words:

Patriot. Act.

 

[85SugarVol]

I don't care. Banks should probably be pissed though.

And when the banks start passing along the incremental costs of compliance? Will you care then?

 

[Christian Lowe]

I don't care. Banks should probably be pissed though.

How do you not care about the continued loss of privacy

 

[Hunerwadel]

How do you not care about the continued loss of privacy

I don't see this as some nefarious government plot to invade my privacy. So no, I don't care.

 

[Christian Lowe]

I don't see this as some nefarious government plot to invade my privacy. So no, I don't care.

People rarely do until it’s too late.

 

[utvolpj]

A couple of points of clarification might be helpful here (not that you want to hear them since it undermines the shrill soapboxing itt):

1) The proposal is not reporting of every transaction of $600 or more. Rather, it is that if a given account has at least $600 in transactions in a given year, then the bank reports on the inflow and outflow.

2) The proposal has been touted by IRS chief Charles Rettig, who came form the Trump administration. The theory is that people are hiding income in accounts so as to avoid tax consequences.








If you want to avoid this i think you need to come to grips with two things. First, there are a lot of people out there intentionally underreporting income to avoid paying taxes they owe. Second, the IRS has had its legs taken out from underneath it, I think we all know by whom, and so the alternative is to increase the budget for enforcing, and to then actually do it.

So now "rich" is someone with more than $600 in transactions per year?

 

[GAVol]

A couple of points of clarification might be helpful here (not that you want to hear them since it undermines the shrill soapboxing itt):

1) The proposal is not reporting of every transaction of $600 or more. Rather, it is that if a given account has at least $600 in transactions in a given year, then the bank reports on the inflow and outflow.

2) The proposal has been touted by IRS chief Charles Rettig, who came form the Trump administration. The theory is that people are hiding income in accounts so as to avoid tax consequences.








If you want to avoid this i think you need to come to grips with two things. First, there are a lot of people out there intentionally underreporting income to avoid paying taxes they owe. Second, the IRS has had its legs taken out from underneath it, I think we all know by whom, and so the alternative is to increase the budget for enforcing, and to then actually do it.

Whenever you see the name Elizabeth Warren associated with anything having to do with banking, you should automatically do the opposite of whatever is being proposed. She’s absolute poison to the financial sector.

 

[lawgator1]

I wondered how long it would take you to come to the defense. You know this isn't about making sure the "rich" avoid taxes this will only hurt the small time guys, you know the people the Dems claim to be for.

If a person making $25,000 a year is hiding income to avoid taxes then that is unacceptable, just as it is unacceptable for a person making $2 million.

May differ in degree. And the person making $2 million is much more likely to be using accounts to maneuver around reporting. But its not a simple question of wealth.

 

[DancingOutlaw]

If a person making $25,000 a year is hiding income to avoid taxes then that is unacceptable, just as it is unacceptable for a person making $2 million.

May differ in degree. And the person making $2 million is much more likely to be using accounts to maneuver around reporting. But its not a simple question of wealth.

What's this magical scenario where a multimillionaire is evading taxes via his bank account? I'm truly curious.

 

[lawgator1]

What's this magical scenario where a multimillionaire is evading taxes via his bank account? I'm truly curious.

Accounts the IRS does not know exist in the first place.

 

[DancingOutlaw]

Accounts the IRS does not know exist in the first place.

Ok, you have a bank account the IRS doesn't know about with $1M in it. How does that cheat taxes?

 

[utvolpj]

Accounts the IRS does not know exist in the first place.

Why do they need to know that? Are you claiming the money being deposited is untraceable until it hits the bank?

 

[lawgator1]

Ok, you have a bank account the IRS doesn't know about with $1M in it. How does that cheat taxes?

If over the course of the year you deposit $300,000 into a second account and you have reported $150,000 in income via deposits from ADP into your checking account, there might be a problem.

 

[lawgator1]

Why do they need to know that? Are you claiming the money being deposited is untraceable until it hits the bank?

 

[utvolpj]

If over the course of the year you deposit $300,000 into a second account and you have reported $150,000 in income via deposits from ADP into your checking account, there might be a problem.

That's not tracked. This is about my transaction of buying school uniforms being reported to the IRS

 

[utvolpj]

Then you'll need a few hundred thousand people to sift thru this given the idiotic limit imposed.

They're now just going to avoid us banks which they were likely doing in the first place

 

[Thunder Good-Oil]

I wish that every American that values their freedom will open online accounts at 2 banks with $5 in one and $605 in the other. Then EVERY morning transfer $600 from the $605 account to the $5 account. Then reverse the transaction the following day. Repeat. Every day.

 

[lawgator1]

Then you'll need a few hundred thousand people to sift thru this given the idiotic limit imposed.

They're now just going to avoid us banks which they were likely doing in the first place

I am sure it can be done electonically, to be reviewed by a person when an irregularity of any real size shows up.

 

[DEFENDTHISHOUSE]

If we’re to have a tax system at all, this highlights the need for a flat tax.

 

[utvolpj]

I am sure it can be done electonically, to be reviewed by a person when an irregularity of any real size shows up.

This isn't about irregularities. Every single account with >$600 in transactions per year will need to be reported. Given FDIC limits that could be a while lot for someone with sizeable assets. I have about 10 accounts that will qualify because of loans, bonuses, kids, etc. This is using the IRS to get around search laws. Interesting that a lawyer has no issues with it

 

[LouderVol]

Proposed IRS reporting of bank account information upsets Ohio’s community banks and Republican legislators

Thanks. I love that they are offsetting a 3.5 trillion dollar budget increase with something that may generate 40 billion a year....

Also makes me wonder about how they are actually going to be able to use it. From 10k to 600 is a huge increase in the number of transactions to monitor.

 

[lawgator1]

This isn't about irregularities. Every single account with >$600 in transactions per year will need to be reported. Given FDIC limits that could be a while lot for someone with sizeable assets. I have about 10 accounts that will qualify because of loans, bonuses, kids, etc. This is using the IRS to get around search laws. Interesting that a lawyer has no issues with it

The Fourth Amendment does not ban all searches, only unreasonable ones.

You've already disclosed this information to a third party, the bank, and so you have no standing to contend that your privacy is violated by the bank sharing it with the IRS. Same as with a deposit of $10k or more in cash.

 

[utvolpj]

The Fourth Amendment does not ban all searches, only unreasonable ones.

You've already disclosed this information to a third party, the bank, and so you have no standing to contend that your privacy is violated by the bank sharing it with the IRS. Same as with a deposit of $10k or more in cash.

Our definitions of reasonable seem to differ. This is crazy overreach to accomplish very little by an ineffective govt. All to avoid cutting spending in any meaningful way.

Again, true cheats already know how to avoid this.

 

[LouderVol]

If over the course of the year you deposit $300,000 into a second account and you have reported $150,000 in income via deposits from ADP into your checking account, there might be a problem.

What if I am just moving that 300k from an account I already had?

The issue is your premise starts with the assumption fo guilt. If the IRS needs to look at an account there are means for them to do that. Defaulting to requiring it is just Big Brother upping the game, not closing some loophole.