[Ed. – This would radically shift the current federal agency monitoring threshold of $10,000 per transaction — which mainly affects small businesses (and is often overly intrusive) — to practically everyone with a bank account, including you and me. Tens of millions of Americans have bank accounts with more than $600 in them. This “reconciliation bill” provision would license the IRS to be suspicious of them all. Understandably, a poll showed two-thirds of voters oppose this plan.]
How much money do you have in your bank account? Depending on your answer, under proposed tax reform from President Joe Biden, all your transactions would be reported to the IRS.
This proposed plan is raising privacy concerns. …
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Our sources are testimony from the IRS Commissioner to the Senate Finance Committee, as well as President Joe Biden’s spending plan for fiscal year 2022.
THE ANSWER: Yes, under President Biden’s proposed legislation the IRS would have more information on financial accounts with more than $600.
Under the proposed legislation, “[f]inancial 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.”