Proposed IRS Bank Reporting Threshold Raised to $10K
Senior Democrats in Congress have agreed to make changes to their proposed tax reporting threshold for bank account inflows and outflows. An earlier proposal that put that threshold at $600, drew criticism for invasion of privacy and government overreach.
The White House has pledged to go after corporations and wealthy individuals who are not “paying their fair share” in taxes. Part of that plan was to monitor personal and business accounts with more than $600 of activity. According to the Treasury, the reports would allow auditors to identify discrepancies between declared income and actual deposits.
Now the White House will put forward a much more limited plan for the Internal Revenue Service, NY Times reports. Under the new plan, banks would only be required to provide data on accounts with total annual deposits or withdrawals worth more than $10,000. Additionally, the reporting requirement would not apply to payroll deposits for wage and salary earners or to beneficiaries of federal programs such as Social Security.
The administration has said the IRS will not monitor specific customer transactions but would instead use the bank account information to spot discrepancies. The change from $600 to $10,000 would exempt millions of Americans from the reporting requirement.
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Doesn’t change my opinion. This is crap! Most of us playing the points game pay for dinners with friends or book the trip on our cards for the points. Their paying me back isn’t income for me. It might start with in vs out, then they will want to see who transactions are with. No ones business if I buy comic books or donate to charity. 99.9% of us are doing nothing nefarious.
I know. I buy stuff for my parents sometimes to get the points. Also, I move money for stuff like property taxes or vacation or emergencies to my savings accounts. Then I transfer it back when needed.
Why do they need to look at our bank accounts, period. My wife works as an independent contractor and deposits random checks totally over $10k a year. It is none of their business.
Still WAY too low!!!!
“total annual deposits or withdrawals worth more than $10,000.” That is a huge number of residents. TOTAL annual deposits or withdrawals (not per transaction). What a waste of taxpayer’s money and time. Will also increase tax reporting costs for taxpayers, answering IRS questions on these transactions, increase business expenses etc all while Biden conveniently evades taxes himself: https://nypost.com/2021/09/23/biden-could-owe-as-much-as-500k-in-irs-taxes-report/
I believe they are talking about individual transactions not a total number of transactions.
No, it’s cumulative transactions; that’s why the $600 was so crazy low. The US Press just doesn’t explain and share these great initiatives with the public; elections have consequences. We already have $10k per transaction being monitored and reported.
This might kill manufactured spending as we know it today.
True, high levels will show a large imbalance of what comes in vs. 2X, 3X, or even 10X going out; that’s not good.
If it happens, it won’t go into effect until December 2022.
Sure, and then once it passes they will change the threshold to whatever they want…or just remove the threshold completely…or they will create loopholes and exceptions so big as to make it meaningless. This is how the slime in DC work.
I think it would be more effective if we just applied the law to DC politicians only for a few years, see how that goes.
Still intrudes on 99% of all those with a job who pay their bills. While salary can be excluded from the tally on the way in, one the way out you’re spending $10k or more, thus they are analyzing your banking transactions. 99% of us.