Treasury Dept. Declares IRS Will Monitor Transactions of ALL U.S. Accounts Over $600

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    • #445503
      RCW2020
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      • Total Posts: 685

      Posted on 09/11/2021

      Joe Biden’s Treasury Department has announced Thursday an invasive new initiative tasking the federal government to audit virtually all financial transactions of Americans with bank accounts holding at least $600.

      The Treasury document, called “General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals,” outlines how every individual bank account with over $600 will be monitored by the Internal Revenue Service (IRS).

      “This proposal would create a comprehensive financial account information reporting regime. Financial institutions would report data on financial accounts in an information return. The annual return will report gross inflows and outflows with a breakdown for physical cash, transactions with a foreign account, and transfers to and from another account with the same owner,” the memo states.

      “This requirement would apply to all business and personal accounts from financial institutions, including bank, loan, and investment accounts, with the exception of accounts below a low de minimis gross flow threshold of $600 or fair market value of $600.”

      This proposal will also “apply to crypto asset exchanges and custodians.”

      Link to source…

    • #445505
      NV Wino
      Moderator
      • Total Posts: 7,990

      How about they start from the top down? 🙄

      “As we act, let us not become the evil that we deplore.” Barbara Lee
      “Politicians and pro athletes: The only people who still get paid when they lose.” William Rivers Pitt

      • #445507
        djean111
        Participant
        • Total Posts: 6,445

        This is about control.  Also, gee, I wonder if  health insurers will be granted access to the data.

        America is not a country, it's just a business. (Brad Pitt, Killing Them Softly)

        Everything I post is just my opinion, and, honestly, I would love to be wrong.

    • #445506
      soryang
      Participant
      • Total Posts: 1,475

      This is outrageous. Talk about totalitarian trends. What is the statute that authorizes this? Tax and other regulations need to based on a statutory authority. When did Congress pass a law authorizing this? Does the administration think that politicians would publicly support this oppressive proposal? I didn’t see any law cited for the proposal in the original report. I’ve never heard of anything as intrusive as this in my life. The ponzi scheme is running out of gas, so this is in preparation for something else, even more draconian.

    • #445508
      alcina
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      • Total Posts: 875

      “You’re going to push more folks into small cash transactions, you’re going to push more banking offshore … the big fish out there that do have sizable assets that are eligible for taxation offshore. This is the ultimate regressive tax,” Hedger said.

      “You’re going to end up punishing the worst off among us … the lower income folks in this country have historically been the targets of aggressive IRS audits because they don’t have the CPAs and the lawyers to be able to fight back,” he added.

      So they have the resources for this, but not the resources to enforce tax laws affecting the 1%. How odd.

      As a dual US-Canadian citizen, I already have to file an annual report to the IRS on all my Canadian bank accounts, even though they’re not (currently) taxable in the US. So now US citizens at home get to experience the same intrusion, but without the paperwork headache. Of course, the banks will still need to pass on the cost of this which, according to my Canadian banks — who also have to report these accounts to the US — is not trivial.

      I wonder if this will accelerate or decelerate the move to cashless transactions. I’m reaching the point where I’m starting to appreciate why my dad kept all his money in a small safe built into the concrete floor of the garage.

      "The United States is also a one-party state but, with typical American extravagance, they have two of them." -Julius Nyerere, First President of Tanzania

    • #445509
      GZeusH
      Participant
      • Total Posts: 4,262

      All accounts over $6 million.
      Got to keep beating the peasants so the 1% can prosper.

      Corporate America consists of totalitarian entities laser-focused on short-term greed.

    • #445511
      alcina
      Participant
      • Total Posts: 875

      It’s presented as if it was intended to catch tax revenue from noncompliant businesses, but then they slip in the personal account requirement in the middle of the proposal (emphasis added below). So far it’s just a proposal and won’t take effect until after Dec 2022. I guess it’s time to write to my useless congress seat warmers.

      ***************************************************

      INTRODUCE COMPREHENSIVE FINANCIAL ACCOUNT REPORTING TO IMPROVE TAX COMPLIANCE
      Current Law
      Business income is subject to limited information reporting. Current information reporting of
      gross receipts exists for only certain types of revenue (from Forms 1099-MISC, 1099-NEC, and
      1099-K), and there is no information reporting on total deductible expenses.

      Reasons for Change
      The tax gap for business income (outside of large corporations) from the most recently published
      Internal Revenue Service (IRS) estimates is $166 billion a year. The scale of this revenue loss is
      driven primarily by the lack of comprehensive information reporting and the resulting difficulty
      identifying noncompliance outside of an audit. While the net misreporting percentage is only 5
      percent for income subject to substantial information reporting, the net misreporting percentage
      for certain categories of business income exceeds 50 percent.

      Requiring comprehensive information reporting on the inflows and outflows of financial
      accounts will increase the visibility of gross receipts and deductible expenses to the IRS.
      Increased visibility of business income will enhance the effectiveness of IRS enforcement
      measures and encourage voluntary compliance.

      Proposal
      This proposal would create a comprehensive financial account information reporting regime.
      Financial institutions would report data on financial accounts in an information return. The
      annual return will report gross inflows and outflows with a breakdown for physical cash,
      transactions with a foreign account, and transfers to and from another account with the same
      owner. This requirement would apply to all business and personal accounts from financial
      institutions, including bank, loan, and investment accounts, with the exception of accounts
      below a low de minimis gross flow threshold of $600 or fair market value of $600.

      Other accounts with characteristics similar to financial institution accounts will be covered under
      this information reporting regime. In particular, payment settlement entities would collect
      Taxpayer Identification Numbers (TINs) and file a revised Form 1099-K expanded to all payee
      accounts (subject to the same de minimis threshold), reporting not only gross receipts but also
      gross purchases, physical cash, as well as payments to and from foreign accounts, and transfer
      inflows and outflows.

      Similar reporting requirements would apply to crypto asset exchanges and custodians.
      Separately, reporting requirements would apply in cases in which taxpayers buy crypto assets
      from one broker and then transfer the crypto assets to another broker, and businesses that receive
      crypto assets in transactions with a fair market value of more than $10,000 would have to report such transactions.

      The Secretary would be given broad authority to issue regulations necessary to implement this proposal.

      The proposal would be effective for tax years beginning after December 31, 2022.

      "The United States is also a one-party state but, with typical American extravagance, they have two of them." -Julius Nyerere, First President of Tanzania

      • #445842
        Bernie Boomer
        Participant
        • Total Posts: 545

        were trying to say that they would look at the personal accounts of business owners, as opposed to all personal bank accounts?
        It’s a strange thing to put in the middle of a discussion about business tax avoidance, and doesn’t fit with anything above or below it.

        It wouldn’t surprise me at all if they expanded it at some point – after assuring the rattled public that the rule doesn’t apply to their personal bank accounts – but I think they will go down the “that’s not what it means” route, first.

    • #445516
      salemcourt
      Participant
      • Total Posts: 2,965

      rather than Trump or a third party (like myself) voted for Facism.  Enjoy!

    • #445522
      HassleCat
      Participant
      • Total Posts: 7,255

      If I felt like making trouble, I could open 1,000 accounts of $650 each and start transferring money back and forth between them. Problem is, I would spend all day, every day moving money back and forth, and they would probably ignore me.

    • #445531
      Punxsutawney
      Moderator
      • Total Posts: 2,181

      is that this $600 threshold has been around since at least the early 80’s. Adjusted for inflation it should be a lot more.

      And of course who gets to say what the government does with this info, assuming they can even manage it.

      In America, “Liberty” means “Free to Die in Service of Capital” - Amfortas the hippie.

      Most of today’s elites have the moral and social reasoning capacities of spoiled toddlers.

      “People of privilege will always risk their complete destruction rather than surrender any material part of their advantage...but the privileged also feel that their privileges, however egregious they may seem to others, are a solemn, basic, God-right. The sensitivity of the poor to injustice is a trivial thing c

    • #445610
      3fingerbrown
      Participant
      • Total Posts: 3,712

      I would love to know whose idea was this and who got this put in this “proposal”?

      All governments lie to their citizen's, but only Americans believe theirs.

    • #445613
      soryang
      Participant
      • Total Posts: 1,475

      according to a Bloomberg article:

      Along with SALT changes, House Democrats are also still considering the Biden administration’s proposal to require banks and other financial institutions to report customers’ account flows to the Internal Revenue Service.

      Neal said that provision is still in play, with members working with the White House and Treasury to come up with a plan that Democrats can agree on. Biden’s proposal, which would kick in for accounts with gross flows of $600 or more, has faced backlash from banking and credit union trade associations, as well as consumer protection groups.

      https://www.bloomberg.com/news/articles/2021-09-15/tax-hikes-to-pay-for-biden-agenda-approved-by-house-committee

      I can’t even conceive of a legitimate purpose for such a burdensome and sweeping provision bringing virtually every financial account under surveillance. There really has to be an ulterior motive. I could see some IT companies making big money off this, because so much data will be swept up, how could any discrimination be applied? Their programs will make a lot of gross errors erroneously freezing the accounts of innocent people who can’t prove they haven’t evaded taxes or been involved in some “illegal” activity that turns out to be some bs computer progam parameter.

      Then there is the possibility of some other unknown agenda having to do with sweeping changes to the financial system and using this surveillance to enforce compliance.

    • #445615
      Satan
      Participant
      • Total Posts: 5,202

      Just so they’ll have something else to bitch about.

      "Those who make peaceful revolution impossible will make violent revolution inevitable". - John F. Kennedy

    • #445852
      Ohio Barbarian
      Moderator
      • Total Posts: 21,767

      The oligarchy controls the government, and won’t allow it to tax them, but there is this monstrous deficit that’s been increased again and again for their benefit, and somebody’s worried about the whole Ponzi scheme crashing down, so they want to squeeze the classes they think are helpless.

      Just another sign of imperial decline.

      It is better to vote for what you want and not get it than to vote for what you don't want and get it.--Eugene Debs

      You can jail a revolutionary, but you can't jail the revolution.--Fred Hampton

    • #445859
      Hobbit709
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      • Total Posts: 2,609

      will be the $1169 deposit every month from Social Security.

      I don't waste my time teaching pigs to sing.

    • #445862
      surrealAmerican
      Participant
      • Total Posts: 1,043

      … there’s the question of how.

      The IRS doesn’t employ enough people to actually audit this many accounts.

    • #445902
      Babel 17
      Participant
      • Total Posts: 5,326

      “You owe us 200 bucks. Feel free to hire a tax lawyer and fight this.”

      But anyway, we’re heading in that direction, but it might be best done slowly, and incrementally.

      P.S. Word on the street is that for the 1% paying taxes is semi-optional, with plenty of legal scams available to them.

      America’s art museum’s basements are overflowing with donations that were overestimated in worth so as to provide tax write-offs. We don’t benefit from that, and it should be curtailed.

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