bank
Biden Wants Banks To Report Transactions Above 600 Dollars
Americans are up in arms over a Biden administration proposal for banks to report transactions above 600 dollars to the IRS. Treasury Secretary Janet Yellen appeared on CNBC’s “Squawk Box” to defend the proposal.
Many are not in favor of what they see as an unprecedented invasion of privacy. However, Yellen insists that such reports are routine for the Internal Revenue Service.
RELATED: Biden Wants IRS to Crack Down on Wealthy Taxpayers
Yellen Says Reporting Transactions Above 600 Dollars to the IRS is Routine
Many Republicans called the proposal another example of government overreach as well as an invasive course of action. Asked whether the IRS possesses the authority to collect more information on taxpayer bank accounts, Yellen said yes. “Well, of course, they do.
Right now, on every bank account that earns more than $10 a year in interest, the banks report the interest earned to the IRS. That’s part of the information base that includes W2’s and reports on dividends in other income that taxpayers earned. So the collection of information is routine,” she explained.
Yellen added that the “enormous: tax gap is the main reason behind proposed tax hikes and additional data collection. She blamed the tax gap on hidden income that doesn’t show up on records. “It’s just a few pieces of information about individual bank accounts, nothing at the transaction level that would violate privacy,” the secretary said.
Transactions Above 600 Dollars May Hold Clue About Concealed Income
If the proposal gets approval, the new information on transactions above 600 dollars can help the Treasury Department. These can determine which high-income wealthy Americans conceal transactions involving money they have. “These would be helpful indicators of where it would make sense for auditing to occur,” she added.
As a result, Yellen said the proposal doesn’t report individual transactions. Instead, the proposal will require banks to turn over the aggregate inflow and outflow reports to the IRS.
This covers bank accounts with at $600 and at least $600 worth of transactions. In addition, banks would have no problem complying as they already provide similar information.
Republicans Slam Proposal
Last week, Republicans slammed the proposal as an invasion of privacy. Senator Cynthia Lummis (WY) criticized the plan during a Senate Banking, Housing, and Urban Development Committee hearing, Lummis asked Yellen if she was aware of “how unnecessary this regulatory burden is?”
“Do you distrust the American people so much that you need to know when they bought a couch? Or a cow?” the senator asked.
“There are obvious privacy concerns for all Americans here and this represents a dramatic new regulatory burden for community banks and credit unions in Wyoming and elsewhere,” Lummis added. “Bank customers are not subjects of the federal government. Banks do not work for the IRS.”
Yellen Defends Plan
Yellen answered Lummis’ direct questioning. “Banks already report directly to the IRS the interest that they pay on accounts when it exceeds $10, and this is not a proposal to provide detailed transaction-level data by banks to the IRS,” she said.
Lummis contended that the “$600 threshold is not usually where you’re going to find the massive amount of tax revenue you think Americans are cheating you out of.”
“That’s correct,” Yellen admitted, “but it’s important to have comprehensive information so that individuals can’t game the system and have multiple accounts.”
Several States Also Showed Concern Over Proposal
Several states have also expressed concern over the proposal. This includes Nebraska, which criticized the plan as a direct violation of the constitutional right to privacy. State Treasurer John Murante believes that the costs associated with compliance will pass on to consumers.
“This could lead to a tremendous invasion of privacy the likes of which our country has never seen. Millions of law-abiding Americans would suddenly have their bank accounts opened to federal investigators for no more reason than buying a refrigerator. This is simply unconscionable.
To make matters worse, under this proposal, saving for college could put an American family on the IRS’s radar, costs that most likely will be passed on to the public,” Murante added.
Watch the Your News video reporting that Treasury Secretary Janet Yellen defends IRS rule requiring banks to report all transactions above 600 dollars:
Loading ...Do you agree with the proposal to require banks to report transactions above 600 dollars to the IRS? In addition, do you think it will help weed out those who tax from undeclared income?
Let us know what you think. Share your comments.
47 Comments
Ridiculous! Invasion into my business and making my bank more work and expand IRS.
no it’s another example of socialism creeping in.
I don’t think it’s any of there business. Biden is an idiot. There is more to worry about in this country.
This is another administration incompetentness to govern and a waste of time, they should put their efforts to other things that Americans need now and not done cause of lack of logic on their agendas.
No another socialist endeavor by congress Biden is an idiot along with yellen stay out of my private affairs they are on a fishing expedition stop illegal immigration and drug runners with Human Resources
It is amazing! guess who doesn’t pay their fair share of taxes? The people who are pushing this through. I love to have some unbiased audit firm to audit these people including the Bidens.
What can you get with $600.00? That is a car payment, food shopping, electric bill etc. I already paid taxes on my savings or checking as those are from my paychecks which the company that I work for deduct my taxes then I file it at the end of the year. Why are they questioning what I do with my money that I paid taxes already. You see when you don’t pay your fair share of taxes you think that everyone else are doing the same thing. NO! It is you the liars and the corrupt citizen.
It definitely is an invasion of privacy. All about the Biden administration gaining control. Strongly against it
A new way to drum up taxes for dems huge spending programs,and will take the heat off Jimbo Joe’s screw ups.With banks paying such low interest rates people will say why put any money’s in bank and the banks are going to loose their cash cow.
This is an EGREGIOUS invasion of privacy as well as highly improper government overreach. Biden may as well have run as a Socialist. The leaps and shameless bounds they are going to control We the People used to surprise me. Not anymore. I expect a new whipping of The People every day.
Big Brother is watching!! If you want people to pay more taxes, change the laws!
Time to hide cash under the mattress like my grand mother did.
The Mortgage Bankers Association, National Bankers Association and American Bankers Association are ALL against it. This is because they fear that if the law is passed, people will pull ALL of their money out of banks, putting the entire banking business out of business. Mortgage bankers will lose a lot of money because people will either not buy homes, or buy them with cash and deal with the owners directly.
one step closer to a cashless society where before you see your paycheck the government will have stolen it directly. All transactions will be exposed without cash.The Federal Reserve note is just that an IOU, direct evidence that the government owes the Banksters.
STRONGLY AGAINST THIS!! I PAY OVER $600 JUST TO LIVE!! ARE THEY FORGETTING LIGHTBILLS, CARPAYMENTS, OTHER LIVING EXPENSES AND GROCERIES TO FEED OUR FAMILIES?? THIS IS RIDICULOUS…JUST ANOTHER WAY FOR THE GOVERNMENT TO CONTROL PEOPLE!! THIS COUNTRY WILL SOON NOT BE THE LAND OF THE FREE! THE DIRECTION WE ARE HEADING IS SCARY!
Can we please get Legal Advice as to how to remove the corrupt Democratic Party from being OUR Rulers? They are unhinged, Surely by now the people and dolts who voted legally or illegally are realizing the SPECTRE they have launched on Americans? Our country is DYING people, the dolts in Congress do not give a shit, this is why they all launched the attack on PRESIDENT TRUMP, it was a concerted attack fueled by the very rich from all over the world. Look at the damage at the border.what can we do now to overtake this corrupt demons ” PARTY for me but not for thee”. Not ONE Person walking into the country should be allowed anything at all! This is not immigration but feckless illegal behaviour by a fake president Biden the ASS!
My rent is over twice that amount. Fu(k Biden.
People will pull all their money out of banks and find other ways to conduct their financial affairs. It will bankrupt and destroy the banking system which would be alright with me. Where is the legalities to all of this BS???? It is amazing to me how everyone buys in to anything this administration says to do….society has become little blind sheep.
Another way for this corrupt politicians to grow the government and control us if they want to track money investigate the corrupt biden family and their deals with China hunter biden and the big guy joe biden what corrupt government we have that is destroying AMERICAN
I cannot believe these idiots in Washington are waisting their time on trying to get every single penny from the worker bees. Guess it’s gonna be time to pull $$ out of the bank, keep it locked in my safe @ home. The American people are sick & tired of this incompetent administration (already), & I’m afraid of what’s gonna happen when pushed too far. Biden is delusional, & must go…but, Kamala isn’t any better…we have to ALL vote RED in the primaries!!!
No Biden is not worried about TerriSt or he would be letting illegals from South America come in without Corona shots you better get it if your a legal resident or else what a big joke little Joe
It’s time to “defund” the IRS. The government already steals too much of the money we work for. The government should be funded based on sales tax per state. That rate should be directly proportionate to each states share of the GDP. No more. No less.
im damn sick and tired of a rich s o b detailimg what i can and cant have he cant take his money to hell with him so hopefully he gets some kind of concience soon
This is another bunch of Biden stupidity. I’m sure the IRS cheaters are scared shitless. IF they would be responsible with the tax money they get and quit sending billions of “support” dollars overseas and spend it in USA we wouldn’t be printing another Trillion $$ to add to our debt.
Let’s open their bank account and see where the hell our money going. This is ridiculous there’s far more important things instead of them snooping their noses into our privacy
This POS along with the rest of this administration duped you all…this is coming from the biggest family of cheaters of the 45 years or more biden’s been in and working for our government! Do as I say not as I do!
This POS along with the rest of this administration duped you all…this is coming from the biggest family of cheaters of the 45 years or more biden’s been in and working for our government! Do as I say not as I do!
Firmly against this . Biden, is currently in the news dodging a potential $500K tax bill and he wants to keep tabs on an old man only making 65K a year ? People wake up, dump the Biden family and get them out of our lives. Please take AOFNC, beauty parlor Pelosi, shit face Schumer and shifty Shiff too. They all suck.
Easy fix. Since many banks, and financial institutions are imposing the illegal, anti-Constitutional, as well as EVERY Human rights law around the world, everyone should be pulling their money out of banks anyway. If they’re going to abide by this, which they will because they know it will boil down to financial penalties or loss of tax cuts, 0% interest loans, otger perks, etc. Everyone should be pulling their money out anyway. Sar/ith the red and blue one.
$600 dollars is crazy but then look who we have running the country. The 3 stooges! Who voted for this senile SOB. We need to get our country back.
The singular context for any IRS interest in individul wealth, is the unfotrunate Amendment federal authority to tax individual income, and only that. What an individual does with private wealth, and how it is moved aroundis absolutely none of the IRS’ business, because it is PRIVATE PROPERTY. Yellen dishonestly slurs taxable income with owned income, showing governments opportunist attitude to seize private wealth as its own resource to use at will.
Abolishig the federal tax authoity to tax individual income will not likely beat a federal government conflict of interest. Taxpayer undewriting is how the Federal government is afforded the over reach and encroachment in almost all facets of individual lives now. A Convention of States amendment to abolish fedral tax authority of persoanl income with states ratification is very viable, especially since we have other vital issues that such a Convention, and apparently not Congress, need to address. The time is here, more so than the Volsted act was back then.
This is another move by the Biden socialist, Marxist regime to control America’s freedoms. What if money you have been saving in a bank account is money that has been taxed and accounted for, what, the government swoops in and confiscates your hard earned money because you have scrimmped and saved for 50+years over a $600 check or cash you take out, that will not happen.
How about we look at government wasteful spending. Stop the out of control end of fiscal year spending that goes on in Federal Government where management goes out of their way to spend all the money in their budgets instead of running a surplus that could be carried forward to the next year. If they could get that under control there wouldn’t be a need to generate more tax revenue. Yellen’s explanation about catching tax cheats is ridiculous. If you catch a tax cheat by monitoring $600 transactions that individual is not a big cheater. I’d think monitoring those that purchase luxury items and report minimal income would be more effective.
This is total bullshit. These people need to be thrown out of government service for incompetence. I am in favor of them facing a firing squad.
Who voted for this idiot anyway?
I will not deposit money in any bank I will revert to paying only cash yes it will be a major inconvenience however It’s better than the alternative..it would halt all yard sales, private car sales it’s just an example of the government squeezing the little guy..
This is a violation of our 4th Amendment Rights. Illegal search and seizure.
To Patrick Erickson. Within a year or maybe sooner cash will not exist.
As usual Government control , worst than Communism. Even third world countries does not share that kind of information. Go after the people who never pay taxes(which IRS itself issues ITN number to illegal aliens) and Banks allows them to open Bank accounts at the first place. Billions lost to monies flowing out of the country to the southern border(Money sending companies-3-50 Billion dollars a year).
Cry more idiots Republicans are the biggest tax evaders and this whole thread is proof just pay your taxes you welfare queen chumps I voted for Biden and will again you should to but your to dumb to good luck idiots
Perhaps this is their attempt to cool inflation by driving money into crypto and out of the US dollar! Only kidding, Biden and his goons aren’t that smart. If this goes through why not play along though? Move $601 from one account to another every day or so. There’s a limit to the data processing capacity of whatever system they’re using for this. Let’s find out what it is.
The democrats are just a bunch of idiots determined to control ( one world order) the freedom of the people. I can’t wait to see how many democratic voters vote republican come next election.
Combine this invasion with the new digital dollar, and they will be scrutinizing EVERYTHING we do – every transfer, every purchase, when it was made and for what purpose! Pure socialistic control method – oh, yeah, and pure bull snot
The money the gov. makes from this will be miniscule compared to what they are spending on illegal aliens coming across the southern border. If Biden, Harris and Pelosi are so sympathetic to illegal aliens, perhaps they should foster about 2 dozen each and take them off the government funds. They have plenty let them share some.
I think this is GREAT!!!! It will foster the advancement of cryptocurrency, which by definition, is an anonymous transaction. Good luck you moron Joe… Why did Bidens parents name him Joe? Cause he is a simpleton, they knew it from birth…
Oh, one more thing… How stupid do u feel now for punching that square next to Biden,Joe for president???!!!
599.99 will be all my transactions have to give the landlord 5checks every month and 599.99 on my card at gas pump soon to fill my car up
Joe how can u do this to Hunter don’t u like him or did he stop baying all your bills because they are over 600K
This is part of the green new deal that’s what I will be using all green