The Biden Administration, following pushback from the American people and Congress, announced that they are abandoning their proposal that would require banks to report inflows and outflows totaling more than $600 a year. The administration’s revised proposal would require banks to report accounts to the Internal Revenue Service (IRS) that exceed $10,000 in inflows and outflows annually.
“While this is a step in the right direction, there is still work to be done,” said Congressman Van Drew. “The initial proposal to require banks to report inflows and outflows that exceed $600 would have affected nearly every American who pays rent or goes to the grocery store. However, the new reporting requirement will still invade consumers’ privacy rights; the IRS should not be surveilling Americans bank accounts – period. If they are so concerned with Americans’ earnings, D.C. elites should be required to report their actions to the American people, not the other way around. Average working Americans are tired of this administration attempting to waste trillions of their taxpayer dollars on socialist programs.”
Congressman Van Drew’s heart is in the right place, but t feel that his mind has yet to grasp the horrific consequences of implementing this new proposal of the Biden administration.
The supposed revision that the banks should only report to the IRS those bank accounts whose annual cash inflows or outflows that exceed $10,000 is not a step in the right direction. No, not in the least. The initial proposal that the banks report the activities of those accounts that have had a balance of $600 at any time during the year was never seriously entertained. It would be prohibitively expensive to implement. No, that was just a feint. The real thrust was this “revised ” proposal.
The target is not merely those who invade millions of dollars in taxes. I cannot think of any American household that does not have annual expenditures in excess of $10,000 including food clothing and shelter. So, every American’s finances would now be potentially subject to scrutiny.
How could (and would) the IRS abuse this power? Well, to start with suppose a household reports $40,000 in total income on their tax return. Three years later the IRS can demand an explanation as to why the total inflows in their account was $42,000. If you can’t remember or prove that you received $2,000 in wedding gifts, you would be subject to tax on that excess $2,000, plus interest and penalties.
This policy is not designed to catch tax cheats. Treasury secretary Yellen claims that they are primarily looking for people who have millions of dollars in inflows, while reporting income of mere thousands of dollars. This is preposterous. If this would be the case why not limit the reporting to those accounts that have millions of dollars in inflows?
No, this is an effort to weaponize the IRS whereby every single American who is deemed to be a political enemy would be subject to criminal proceedings. This is the initial foray of a police state and every American should protest with all their might.
Perhaps i can withdraw and then deposit in few days same amount a thousand times . It that considering my income ? It is same money . How then IRS differentiate between income deposit from any other tapes of deposits ? Question is what to do with excess amount over your official income minus expenses . So it could be just cash on hand or some other types of equity .